Question 23 of 61beginner🧠 RememberMCQ1 mark

Nominal share capital is:

Exercise: Test your Understanding – II | Q: 1(b) | (Chapter: 35)
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Explanation

Option (iii) is the correct answer. The provided text explicitly defines Authorised Capital as 'the amount of share capital which a company is authorised to issue by its Memorandum of Association' and states that 'It is also called Nominal or Registered capital.' Therefore, Nominal share capital refers to the maximum amount of share capital a company is authorised to issue. Option (i) describes Issued Capital, and options (ii) and (iv) describe Subscribed and Paid-up capital respectively, which are different categories mentioned in the context.