WAEC Commerce 1998 Question 70

Question 70

Business Finance

The capital of a company indicated in the Memorandum of Association is known as

  1. A.authorized capital
  2. B.capital employed
  3. C.working capital
  4. D.fixed capital
  5. E.called-up capital
Show the answer and explanation

Answer: A (authorized capital)

Explanation

The Memorandum states the authorised (nominal) capital.