[amp_mcq option1=”Paid up capital” option2=”Authorised capital” option3=”Called up capital” option4=”Issued capital” correct=”option1″]<\/p>\n
The correct answer is: A. Paid up capital<\/strong><\/p>\n Paid-up capital is the amount of money that shareholders have actually paid into the company. It is the total amount of money that has been received by the company for the issue of shares.<\/p>\n Authorised capital is the maximum amount of shares that a company is allowed to issue. It is the total number of shares that a company is allowed to sell.<\/p>\n Called-up capital is the amount of money that shareholders have been asked to pay for their shares. It is the total amount of money that a company has asked shareholders to pay for the shares they have bought.<\/p>\n Issued capital is the total number of shares that a company has issued. It is the total number of shares that a company has sold to shareholders.<\/p>\n Dividends are usually paid on paid-up capital because this is the amount of money that shareholders have actually paid into the company. It is the money that the company has to use to pay its debts and to invest in its business.<\/p>\n Authorised capital, called-up capital and issued capital are not usually used to pay dividends because these are not the amounts of money that shareholders have actually paid into the company. These are the maximum amounts of shares that a company is allowed to issue, the total amount of money that a company has asked shareholders to pay for their shares, and the total number of shares that a company has sold to shareholders, respectively.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Paid up capital” option2=”Authorised capital” option3=”Called up capital” option4=”Issued capital” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-50735","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n