Question : Authorised share capital is also known as:
Option 1: Called up Capital
Option 2: Issued Capital
Option 3: Reserve Capital
Option 4: Nominal Capital
Answer (1)
6th Jan, 2024
Correct Answer: Nominal Capital
Solution : The amount of share capital that a company may at any time raise by issuing new shares is known as authorised capital, sometimes known as nominal capital, and it is specified in the Memorandum of Association (MOA). A company is not permitted to issue shares worth more than its authorised capital.
Hence the correct answer is option 4.
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