Day: April 30, 2020

A company‘s authorised share capital is. . . ?

Select ONE answer:

1. the amount of share capital the company has issued.
2. the amount of share capital which the directors of the company intend to issue.
3. the amount of share capital stated in the company‘s original Memorandum of Association.
4. 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

1. Not correct
2. Not correct
3. Not correct
4. Correct – A company’s authorised share capital can be increased, if the shareholders so approve, by vote.

 

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