Match List-I with List-II concerning different types of corporate share capital definitions:List-I (Type of Capital)List-II (Definition)(A) Authorised Capital(i) It is that part of the subscribed capital which has been called up on the shares.(B) Issued Capital(ii) It is that part of the issued capital which has been actually subscribed by the public.(C) Subscribed Capital(iii) It is that part of the authorised capital which is actually issued to the public for subscription.(D) Called up Capital(iv) The amount of share capital which a company is authorised to issue by its Memorandum of Association.Choose the correct matching sequence from the options below:
- A(A) - (iv), (B) - (iii), (C) - (ii), (D) - (i)
- B(A) - (i), (B) - (iii), (C) - (ii), (D) - (iv)
- C(A) - (i), (B) - (ii), (C) - (iv), (D) - (iii)
- D(A) - (iii), (B) - (iv), (C) - (i), (D) - (ii)
Solution & Step-by-step Explanation
Exploring the matching terms:Authorised Capital (A): The maximum limit up to which a company can raise share capital, as stated in the MoA (iv).Issued Capital (B): The fraction of nominal capital offered to investors (iii).Subscribed Capital (C): The portion of issued shares accepted and taken up by investors (ii).Called up Capital (D): The total amount demanded by the company from shareholders out of the nominal face value (i).Hence, the correct matching variant is (A) - (iv), (B) - (iii), (C) - (ii), (D) - (i).