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WAEC Financial Accounting 1991 (August) Question 23

Question 23

Company Accounts

The authorised share capital of a limited liability company is the number of shares

  1. A.offered for sale
  2. B.called up
  3. C.approved in the memorandum of association
  4. D.subscribed
  5. E.paid up.
Show the answer and explanation

Answer: C (approved in the memorandum of association)

Explanation

Authorised capital is the maximum the memorandum of association allows the company to issue.