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Question : The portion of the capital that may only be accessed during the company's dissolution/winding up is referred to as-

Option 1: Called up Capital

Option 2: Authorised Capital

Option 3: Nominal Capital

Option 4: Reserve Capital


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Reserve Capital


Solution : A part of the company's uncalled capital may be set aside for only being called in the case of the company's winding up. The corporation refers to this uncalled sum as "Reserve Capital." When a corporation is wound up, it is only available to the creditors.

Hence the correct answer is option 4.

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