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WAEC Commerce 2005 Question 11

Question 11

Business Calculations

Use the following information: The nominal capital of a public limited company is made up of 400,000 ordinary shares of 50k each. The Board of Directors decided to issue 50% of it for subscription by the public.
The authorized share capital is

  1. A.N400,000
  2. B.N200,000
  3. C.N100,000
  4. D.N50,000
Show the answer and explanation

Answer: B (N200,000)

Explanation

Authorised capital = 400,000 × 50k = N200,000.