Share capital refers to the amount of money that shareholders have invested in the company, either through purchasing shares or contributing capital directly. It is a key component of the company's equity and represents the initial investment that shareholders have made. Option B correctly defines share capital as the amount of shareholders' equity that the shareholders have contributed to the corporation.

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Share Capital Is

Question 12

Multiple Choice

Share capital is:

A) the amount of shareholders' equity that the corporation has earned through profitable operations
B) the amount of shareholders' equity that the shareholders have contributed to the corporation
C) the amount of shareholder's equity that the shareholders have contributed to the corporation less the amount of shareholders' equity that the corporation has given back to the shareholders (dividends)
D) the amount of shareholders' equity that the shareholders have contributed to the corporation plus the amount of shareholders' equity that the corporation has earned through profitable operations

Correct Answer: