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easyMCQCUET Accountancy 2025 30 May Shift 22026Accountancy
1 mark

What is the nominal share capital?

  1. A
    The amount actually paid by the shareholders
  2. B
    The maximum amount of share capital which a company is authorised to issue.
  3. C
    The amount of capital which is actually applied for by the prospective shareholders.
  4. D
    That part of the authorized capital which is issued by the company.

Solution & Step-by-step Explanation

Nominal Share Capital (also widely known as Registered Capital or Authorized Capital) represents the ultimate upper limit stated in the capital clause of a company's Memorandum of Association. This is the maximum amount of equity capital that a company is legally authorized to raise from investors.

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What is the nominal share capital?
A
The amount actually paid by the shareholders
B
The maximum amount of share capital which a company is authorised to issue.
C
The amount of capital which is actually applied for by the prospective shareholders.
D
That part of the authorized capital which is issued by the company.

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Company AccountsShare CapitalDefinition of Share Capital

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