Grade 11 Exam > Grade 11 Questions > ______ means the total amount of called up sh...
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______ means the total amount of called up share capital which is actually paid to the company by the members
- a)nominal capital
- b)reserve capital
- c)called up capital
- d)Paid-up capital
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
______ means the total amount of called up share capital which is actu...
Explanation:
The correct answer is D: Paid-up capital.
Definition:
Paid-up capital refers to the total amount of called-up share capital that has been paid by the shareholders to the company.
Explanation:
When a company is formed, it issues shares to raise capital. The shareholders are required to pay the amount of capital they have subscribed to. The amount of capital that has been paid by the shareholders is called paid-up capital.
Here are some key points to understand about paid-up capital:
- Paid-up capital represents the actual funds that have been received by the company from its shareholders.
- It is the portion of the share capital that has been paid by the shareholders and is available for the company to use for its operations and investments.
- Paid-up capital can be in the form of cash, assets, or other forms of consideration that the shareholders have provided to the company.
- The amount of paid-up capital determines the financial strength and stability of the company.
- Paid-up capital can increase or decrease over time as shareholders make additional contributions or receive refunds.
In summary, paid-up capital is the total amount of called-up share capital that has been paid by the shareholders to the company, representing the actual funds available for the company to use.
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The correct answer is D: Paid-up capital.
Definition:
Paid-up capital refers to the total amount of called-up share capital that has been paid by the shareholders to the company.
Explanation:
When a company is formed, it issues shares to raise capital. The shareholders are required to pay the amount of capital they have subscribed to. The amount of capital that has been paid by the shareholders is called paid-up capital.
Here are some key points to understand about paid-up capital:
- Paid-up capital represents the actual funds that have been received by the company from its shareholders.
- It is the portion of the share capital that has been paid by the shareholders and is available for the company to use for its operations and investments.
- Paid-up capital can be in the form of cash, assets, or other forms of consideration that the shareholders have provided to the company.
- The amount of paid-up capital determines the financial strength and stability of the company.
- Paid-up capital can increase or decrease over time as shareholders make additional contributions or receive refunds.
In summary, paid-up capital is the total amount of called-up share capital that has been paid by the shareholders to the company, representing the actual funds available for the company to use.
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______ means the total amount of called up share capital which is actually paid to the company by the membersa)nominal capitalb)reserve capitalc)called up capitald)Paid-up capitalCorrect answer is option 'D'. Can you explain this answer?
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