Question on: JAMB Commerce - 2013
The amount of authorized capital that shareholders have subscribed to is
A
issued share capital
B
authorized share capital
C
owner's equity
D
working capital
Ask EduPadi AI for a detailed answer
Correct Option: B
The correct answer is issued share capital. Here's why:
* **Issued share capital** represents the portion of the authorized share capital that the company has actually sold to shareholders. This is the amount the shareholders have subscribed to.
* **Authorized share capital** is the maximum amount of share capital a company is legally permitted to issue.
* **Owner's equity** represents the owners' stake in the company, including share capital, retained earnings, etc.
* **Working capital** is a measure of a company's short-term financial health, calculated as current assets minus current liabilities.
Add your answer
Please share this, thanks!
No responses