3 questions. Try each one, then open the answer to check yourself and read the explanation.
Use the information below to answer questions 17 and 18.
Maimani Plc, whose nominal capital is made up of 5,000,000 ordinary shares of 50k each, decided to offer 80% of it to the public and realized only 50% of the amount due.
What is the company's authorized share capital?
Answer: B (₦2,500,000)
Authorised capital = 5,000,000 shares × 50k = ₦2,500,000.
Use the information below to answer questions 17 and 18.
Maimani Plc, whose nominal capital is made up of 5,000,000 ordinary shares of 50k each, decided to offer 80% of it to the public and realized only 50% of the amount due.
Determine the company's reserve share capital
Answer: D (₦1,000,000)
Shares offered = 80% × 2,500,000 = ₦2,000,000. Only 50% (₦1,000,000) was received, so ₦1,000,000 remains uncalled as reserve capital.
The instrument used in the capital market is
Answer: B (stock)
Stocks are long-term securities traded on the capital market; treasury bills and bills of exchange are money-market instruments.