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Question
State whether you agree or disagree with following statement:
The Authorised capital is also known as Nominal Capital.
Options
Agree
Disagree
MCQ
True or False
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Solution
I Agree with the given statement.
Explanation:
The Authorised Capital is the amount of share Capital which a company is authorised to issue by its Memorandum of Association. The amount of Authorised capital is determined after taking into consideration the future requirements of capital of the company. This capital is also known as “Nominal Capital” or “Registered Capital”.
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Chapter 8: Company Accounts - Issue of Shares - Exercise 8.1 (Objective Questions) [Page 340]
