Arrange the following steps in correct sequence with regard to Shares of a company.(A) Making Calls(B) Forfeiture of Shares(C) Issue of Prospectus(D) Calls in Arrears(E) Reissue of SharesChoose the correct answer from the options given below:
- A(C), (D), (A), (B), (E)
- B(C), (A), (D), (B), (E)
- C(C), (D), (B), (A), (E)
- D(C), (A), (D), (E), (B)
Solution & Step-by-step Explanation
The chronological lifecycle of share issuance and management follows this pattern:Issue of Prospectus (C) to invite applications.Making Calls (A) for balance payments.Incidents of non-payment lead to Calls in Arrears (D).Forfeiture of Shares (B) due to non-payment of arrears.Reissue of Shares (E) to new buyers.Thus, the proper sequence is (C), (A), (D), (B), (E).