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WAEC Financial Accounting 2025 Question 46

Question 46

Company Accounts

The maximum number of shares that a company is allowed by the law to offer to the public for subscription is

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

Answer: A (authorized capital.)

Explanation

Authorized capital is the most a company may issue under its memorandum.