Commerce Exam > Commerce Questions > When the entire face value of a share is call...
Start Learning for Free
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________
- a)Reserve Capital
- b)Subscribed and fully paid up capital
- c)Capital Reserve
- d)Subscribed but not fully paid up capital
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
When the entire face value of a share is called by the company and is ...
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as Subscribed and fully paid up capital.
Most Upvoted Answer
When the entire face value of a share is called by the company and is ...
Subscribed and fully paid up capital
Explanation:
Subscribed and fully paid up capital refers to the amount of capital that has been subscribed to by shareholders and has been fully paid for by them. It represents the total value of shares issued by a company that have been fully paid for.
Key points:
- When a company decides to raise funds by issuing shares, it offers these shares to potential investors.
- Shareholders who are interested in investing in the company subscribe to a certain number of shares.
- The face value of a share is the nominal value assigned to each share by the company.
- Once the shares are subscribed to, shareholders are required to make the payment for the shares within a specified time period.
- Subscribed and fully paid up capital is the portion of the total share capital that has been subscribed to by shareholders and for which the full payment has been made.
- It represents the actual amount of capital that the company has received from shareholders.
- Companies often have the authority to call for the entire face value of a share from shareholders at any time.
- When the company exercises this right and shareholders are required to make the full payment, it is known as a call on the shares.
- The payment made by the shareholders in response to the call on the shares contributes to the subscribed and fully paid up capital of the company.
Example:
Let's say a company issues 10,000 shares with a face value of $10 each. Shareholders subscribe to all the shares, and they make the full payment of $10 for each share. In this case, the subscribed and fully paid up capital of the company would be $100,000 (10,000 shares x $10 per share).
Conclusion:
Subscribed and fully paid up capital represents the portion of the total share capital that has been subscribed to by shareholders and for which the full payment has been made. It reflects the actual amount of capital that the company has received from shareholders.
Explanation:
Subscribed and fully paid up capital refers to the amount of capital that has been subscribed to by shareholders and has been fully paid for by them. It represents the total value of shares issued by a company that have been fully paid for.
Key points:
- When a company decides to raise funds by issuing shares, it offers these shares to potential investors.
- Shareholders who are interested in investing in the company subscribe to a certain number of shares.
- The face value of a share is the nominal value assigned to each share by the company.
- Once the shares are subscribed to, shareholders are required to make the payment for the shares within a specified time period.
- Subscribed and fully paid up capital is the portion of the total share capital that has been subscribed to by shareholders and for which the full payment has been made.
- It represents the actual amount of capital that the company has received from shareholders.
- Companies often have the authority to call for the entire face value of a share from shareholders at any time.
- When the company exercises this right and shareholders are required to make the full payment, it is known as a call on the shares.
- The payment made by the shareholders in response to the call on the shares contributes to the subscribed and fully paid up capital of the company.
Example:
Let's say a company issues 10,000 shares with a face value of $10 each. Shareholders subscribe to all the shares, and they make the full payment of $10 for each share. In this case, the subscribed and fully paid up capital of the company would be $100,000 (10,000 shares x $10 per share).
Conclusion:
Subscribed and fully paid up capital represents the portion of the total share capital that has been subscribed to by shareholders and for which the full payment has been made. It reflects the actual amount of capital that the company has received from shareholders.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer?
Question Description
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer?.
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer?.
Solutions for When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice When the entire face value of a share is called by the company and is also paid by the shareholder, It is known as ______________a)Reserve Capitalb)Subscribed and fully paid up capitalc)Capital Reserved)Subscribed but not fully paid up capitalCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup