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      Question

      Match the following: A) Authorised Capital P) for

      which company has received applications B) Subscribed capital Q) Now shareholders C) Paid-up capital R) Maximum capital company can raise D) Issued Share capital S) money received from the sale of its shares
      A A-P, B-S, C-R, D-Q Correct Answer Incorrect Answer
      B A-R, B-P, C-S, D-Q Correct Answer Incorrect Answer
      C A-R, B-S, C-Q, D-P Correct Answer Incorrect Answer
      D A-Q, B-R, C-P, D-S Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Authorised Share Capital - The amount of capital with which a company is registered with the registrar of companies (body responsible for registration of companies). It is the maximum amount of capital which a company can raise through shares. Subscribed capital- The amount of capital (out of authorized capital) for which company has received applications from the general public who are interested in buying shares. Paid-up capital is money that a company has received from the sale of its shares, and represents money that is not borrowed. Issued share capital is the amount of capital (out of subscribed capital) which has been issued by the company to the subscribers and thus are now shareholders.

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