WAEC Accounting 2022 Objective — Question 37

Question 37 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.

The maximum amount a company can raise through the issue of shares is

A. reserve capital
B. authorized capitalCorrect
C. paid-up capital
D. loan capital

Explanation

Authorised (registered) capital is the maximum amount of share capital a company is legally permitted to issue, as stated in its memorandum of association.

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