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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


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 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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