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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


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

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.

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