The correct answer is B. 44
Explanation:
A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-data allotment was made on the applications of 2,400 shares. This means that 2,400 shares were allotted on a pro-rata basis, i.e., each share application was allotted a fraction of the shares applied for, proportional to the total number of shares applied for divided by the total number of shares allotted.
If A has been allotted 40 shares, and 2,400 shares were allotted on a pro-rata basis, then A must have applied for 40 * 3,000 / 2,400 = 44 shares.
Option A is incorrect because it is the number of shares that A was allotted.
Option C is incorrect because it is the number of shares that were allotted on a pro-rata basis.
Option D is incorrect because it is the number of shares that were issued by A Ltd.