Which of the following terms is alternatively used to describe the Registered Capital of a corporate entity?
- ASubscribed capital
- BIssued Capital
- CNominal Capital
- DReserve capital
Solution & Step-by-step Explanation
Nominal Capital (also known as Authorised Capital) is the maximum amount of share capital that a company is authorized to issue by its Memorandum of Association. Because this amount is registered with the Registrar of Companies (ROC) at the time of incorporation, it is also called Registered Capital.