Question : A portion of subscribed uncalled capital known as __________ and is referred to as such since it won't be called up unless and until the Company is unable to pay its debt in full, at the time of liquidation of the Company.
Option 1: Issued Capital
Option 2: Subscribed Capital
Option 3: Reserve Capital
Option 4: Capital Reserve
Answer (1)
18th Jan, 2024
Correct Answer: Reserve Capital
Solution : A portion of subscribed uncalled capital known as reserve capital is referred to as such since it won't be called up unless and until the Company is unable to pay its debt in full, at the time of liquidation of the Company. Hence, the correct option is 3.
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