Share capital consists of:

Question

Quizplus · Accepted Answer

Share capital consists of amounts received from shareholders when they purchase shares in the company. This is a way for companies to raise capital and fund their operations, without taking on debt. Earnings generated by the company are not part of share capital, but rather are retained earnings that may be reinvested or distributed as dividends. Amounts paid by customers and capital raised by issuing debentures are also not part of share capital, as they do not involve investments by shareholders in the company.

Share Capital Consists Of