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Question
The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ______.
Options
Nominal capital
Issued capital
Reserve capital
Subscribed capital
MCQ
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Solution
The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as nominal capital.
Explanation:
Nominal capital refers to the maximum amount of capital that a company is authorised to issue as stated in its Memorandum of Association. It is also called authorised capital.
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