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JAMB Economics 2018 Objective — Question 2

Question 2 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2018 Objective paper, with the correct answer and a full explanation.

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

  • A. Paid-up capital
  • B. Issued capital
  • C. Authorized CapitalCorrect
  • D. Capital premium

Explanation

Authorized capital is the maximum amount of capital a company is permitted to raise through share issuance, as stated in its memorandum.

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