Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
What is Nominal share capital?
Options:
That part of authorized capital which is issued by the company.
The amount of capital which is actually applied by shareholders.
The amount of capital which is paid by the shareholders
The maximum amount of share capital that a company is authorized to issue.
Correct Answer:
The maximum amount of share capital that a company is authorized to issue.
Explanation:
Nominal share capital is the capital that is paid by the shareholders to buy shares at face value.