Question : Which of the following assertions is accurate?
Option 1: Authorised Capital < Issued Capital
Option 2: Authorised Capital > Issued Capital
Option 3: Paid up Capital > Issued Capital
Option 4: None of the above
Answer (1)
25th Jan, 2024
Correct Answer: Authorised Capital > Issued Capital
Solution : Authorized Capital denotes the maximum amount of equity that a business may obtain from the general public through the issuance of shares. Issued Capital is a part of the authorized capital, which is offered to the general public for subscription. Hence, the correct option is 2.
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