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__________ means the total amount of called up capital on the shares issued and subscribed by the shareholders on capital account.
- a)Called-up capital
- b)subscribed capital
- c)nominal capital
- d)Paid-up capital
Correct answer is option 'A'. Can you explain this answer?
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__________ means the total amount of called up capital on the shares i...
Explanation:
The correct answer is A: Called-up capital.
Here is a detailed explanation of each option:
1. Called-up capital: This refers to the total amount of capital that shareholders have been required to pay or have agreed to pay on the shares they have subscribed to. It represents the portion of the subscribed capital that has been called up for payment.
2. Subscribed capital: This is the total amount of capital that shareholders have agreed to take, or subscribe to, by purchasing shares in a company. It represents the maximum amount of capital that the company can raise from shareholders.
3. Nominal capital: This is another term for authorized capital or registered capital. It represents the maximum amount of capital that a company is authorized to raise through the issuance of shares. It is usually stated in the company's founding documents.
4. Paid-up capital: This refers to the portion of the called-up capital that has been paid by the shareholders. It represents the actual amount of capital that the shareholders have contributed to the company.
To summarize, called-up capital represents the total amount of capital that shareholders have been required or agreed to pay, while subscribed capital represents the total amount of capital that shareholders have agreed to take. The other options, nominal capital and paid-up capital, refer to different aspects of the capital structure but are not synonymous with called-up capital.
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The correct answer is A: Called-up capital.
Here is a detailed explanation of each option:
1. Called-up capital: This refers to the total amount of capital that shareholders have been required to pay or have agreed to pay on the shares they have subscribed to. It represents the portion of the subscribed capital that has been called up for payment.
2. Subscribed capital: This is the total amount of capital that shareholders have agreed to take, or subscribe to, by purchasing shares in a company. It represents the maximum amount of capital that the company can raise from shareholders.
3. Nominal capital: This is another term for authorized capital or registered capital. It represents the maximum amount of capital that a company is authorized to raise through the issuance of shares. It is usually stated in the company's founding documents.
4. Paid-up capital: This refers to the portion of the called-up capital that has been paid by the shareholders. It represents the actual amount of capital that the shareholders have contributed to the company.
To summarize, called-up capital represents the total amount of capital that shareholders have been required or agreed to pay, while subscribed capital represents the total amount of capital that shareholders have agreed to take. The other options, nominal capital and paid-up capital, refer to different aspects of the capital structure but are not synonymous with called-up capital.
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__________ means the total amount of called up capital on the shares issued and subscribed by the shareholders on capital account.a)Called-up capitalb)subscribed capitalc)nominal capitald)Paid-up capitalCorrect answer is option 'A'. Can you explain this answer?
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