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Question
Answer in one Sentence only :
What is authorised capital?
Solution
The amount of capital stated in the memorandum of association at the time of incorporation is referred to as authorised capital. It is the maximum amount of capital that can be issued to the shareholders of a company. It is also known as the registered capital or the nominal capital of the company.
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Nominal value of shares allotted to the public is called _____________ capital.
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Assertion (A): Authorised share capital is not issued to the public at once.
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