
A company‘s authorised share capital is. . . ?
Select ONE answer:
- the amount of share capital the company has issued.
- the amount of share capital which the directors of the company intend to issue.
- the amount of share capital stated in the company‘s original Memorandum of Association.
- the maximum amount of share capital which the company currently has the power to issue.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct – A company’s authorised share capital can be increased, if the shareholders so approve, by vote.
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