Which of the following statements is true? (C.S. Foundation, Dec. 2012)

Question

Quizplus · Accepted Answer

Authorised capital is the maximum amount of capital that a company is authorized to issue to shareholders as per its constitutional documents. Issued capital is the portion of authorized capital that has been offered and subscribed by shareholders. Therefore, authorized capital is always greater than or equal to issued capital, making option B correct. Option C is incorrect because paid-up capital, which is the portion of issued capital that shareholders have paid for, cannot exceed issued capital.

Which of the Following Statements Is True? (C