Accountancy Part AAccounting for Shares

Authorized capital is the amount of share capital a company is author…

Authorized capital is the amount of share capital a company is authorized to issue by _____________ .

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Memorandum of association of the company

NCERT (2026-27 edition):
Share Capital of a Company – “… Authorised Capital: Authorised capital is the amount of share capital which a company is authorised to issue by its Memorandum of Association. The company cannot raise more than the amount of capital as specified in the Memorandum of Association.”