Lion Ltd issued 20 000 shares with an issue price of $1.30 on which the full price has been paid to the company.The maximum additional amount the shareholders can be asked to contribute if the company cannot pay its debts is:

Question

Quizplus · Accepted Answer

When shares are fully paid, the shareholders cannot be asked for any additional contribution. Therefore, the maximum additional amount the shareholders can be asked to contribute in this case is nil. Option A, C, and D do not apply in this scenario.

Lion Ltd Issued 20 000 Shares with an Issue Price