Question

Which of the following statement is/are true?

1. Authorized Capital < Issued Capital
2. Authorized Capital ≥ Issued Capital
3. Subscribed Capital ≤ Issued Capital
4. Subscribed Capital > Issued Capital

Options

• (i) only

• (i) and (iv) Both

• (ii) and (iii) Both

• (ii) only

Answer 1

(ii) and (iii) Both

Explanation:

True: Authorised capital is equal to or more than issued capital (i.e., Issued ≤ Authorised).

True: Subscribed capital is the part of issued capital (i.e., Subscribed ≤ Issued).