The total share capital which a company would be allowed to issue is known as

Assessment: WAEC SSCE - Financial Accounting - 1999 (Objective) Subject: Financial Accounting

Question 1 Report

The total share capital which a company would be allowed to issue is known as
Answer Details
The total share capital that a company is allowed to issue is known as authorized share capital. This is the maximum amount of money that a company can raise by issuing shares to investors. It is set out in the company's articles of association and can be changed by a resolution of the shareholders. The authorized share capital is not necessarily equal to the issued share capital, which is the actual amount of shares that have been sold or issued to shareholders. The working capital and fixed capital are different types of financial resources that a company may have, but they are not directly related to the share capital.

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