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WAEC Economics 2000 Question 13

Question 13

Business Organisations

The maximum amount of money a company is allowed to raise by issuing shares to the public is called

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

Answer: D (authorized capital.)

Explanation

Authorised (nominal) capital is the most share capital the company's memorandum allows it to raise.