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    Question

    Dividend is paid to the shareholders

    on:
    A Authorized Capital Correct Answer Incorrect Answer
    B Issued Capital Correct Answer Incorrect Answer
    C Paid-up Capital Correct Answer Incorrect Answer
    D Subscribed Capital Correct Answer Incorrect Answer
    E Reserve Capital Correct Answer Incorrect Answer

    Solution

    Dividends are distributed to shareholders based on the number of shares they hold, which constitutes the Paid-up Capital (the portion of the issued capital that has been paid for by the shareholders). Authorized capital is the maximum limit, and issued capital is what is offered to the public.

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