[amp_mcq option1=”only on issued capital” option2=”only on authorised capital” option3=”only on paid-up capital” option4=”no any of the above” correct=”option3″]
The correct answer is C. only on paid-up capital.
A company pays dividends only on the paid-up capital, which is the amount of money that shareholders have actually paid into the company. The issued capital is the total amount of shares that a company has authorized to issue, but it does not necessarily mean that all of these shares have been sold. The authorized capital is the maximum amount of shares that a company can issue.
Here is a brief explanation of each option:
- Option A: only on issued capital. This is incorrect because a company pays dividends only on the paid-up capital, not on the issued capital.
- Option B: only on authorised capital. This is incorrect because a company pays dividends only on the paid-up capital, not on the authorized capital.
- Option C: only on paid-up capital. This is the correct answer because a company pays dividends only on the paid-up capital.
- Option D: no any of the above. This is incorrect because option C is the correct answer.