Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

What is the maximum amount a company can call on shareholders on any call?

Options:

5% of face value of shares

10% of face value of shares

15% of face value of shares

25% of face value of shares

Correct Answer:

25% of face value of shares

Explanation:

The correct answer is option 4- 25% of face value of shares.

The maximum amount a company can call on shareholders on any call is 25% of face value of shares.

Two points are important regarding the calls on shares.

First, the amount on any call should not exceed 25% of the face value of shares.

Second, there must be an interval of at least one month between the making of two calls unless otherwise provided by the articles of association of the company.