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JAMB Commerce 2008 Objective — Question 14

Question 14 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2008 Objective paper, with the correct answer and a full explanation.

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14. Maimani Plc, whose nominal capital is made up of 5,000,000 ordinary shares of 50k each, decided to offer 80% of it to the public and realized only 50% of the amount due. What is the company's authorized share capital?

  • A. N2,500,000Correct
  • B. N4,000,0000
  • C. N5,000,000
  • D. N7,500,000

Explanation

Authorised share capital = N0.50 x 5,000,000 = N2,500,000.

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