Question : Which of the following statements is/are correct?
Option 1: Authorized Capital < Issued Capital
Option 2: Authorized Capital > Issued Capital
Option 3: Subscribed Capital > Issued Capital
Option 4: None of the above
Correct Answer: Authorized Capital > Issued Capital
Solution : Answer = Authorized Capital > Issued Capital
Authorized capital refers to the maximum amount of capital a company is allowed to issue, while issued capital is the portion of authorized capital that has been issued to shareholders. Therefore, it is possible for the authorized capital to be greater than the issued capital.
Hence, the correct option is 2.