Question : Reserve capital is a part of_____________.
Option 1: Called up Capital
Option 2: Forfeited share Capital
Option 3: Unsubsribed capital
Option 4: Capital to be called up only on liquidation of company
Correct Answer: Capital to be called up only on liquidation of company
Solution : Answer = Capital to be called up only on liquidation of a company
Reserve capital represents the portion of the authorized capital of a company that is not called up by shareholders during its formation. It serves as a safeguard against financial instability and can be called upon only in the event of the company's liquidation, providing an additional layer of security for creditors and investors.
Hence, the correct option is 4.
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