CUET Preparation Today
Is a separate capital account opened for each shareholder by the company? |
Yes No Open at the option of shareholders Differ according to company |
No |
The correct answer is option 2- No. No, a separate capital account is not opened for each shareholder by the company. Since the number of shareholders is very very large, a separate capital account cannot be opened for each one of them. Hence, innumerable streams of capital contribution merge their identities in a common capital account called as ‘Share Capital Account’. |
