Arrange the following in the correct chronological order for the issue of shares:(A) Share forfeiture(B) Share Application(C) Share Allotment(D) Unpaid CallChoose the correct answer from the options given below:
- A(B), (A), (C), (D)
- B(B), (C), (D), (A)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The structural operational cycle for issuing shares progresses as follows:(B) Share Application: Investors apply for the shares by paying application money.(C) Share Allotment: The company allocates shares to valid applicants.(D) Unpaid Call: The company makes calls for the remaining money; some shareholders default, creating an unpaid call.(A) Share Forfeiture: Due to non-payment of the call money, the company cancels/forfeits those shares.Thus, the correct sequence is (B), (C), (D), (A).