The maximum amount of money a company is allowed to raise by issuing shares to the public is called

Assessment: WAEC SSCE - Economics - 2000 (Objective) Subject: Economics

Question 1 Report

The maximum amount of money a company is allowed to raise by issuing shares to the public is called
Answer Details
The maximum amount of money a company is allowed to raise by issuing shares to the public is called authorized capital. This is the total amount of share capital that a company is authorized to issue as per its Memorandum of Association (MOA). The authorized capital can be changed with the approval of the shareholders, but this requires amending the MOA. The authorized capital is an important measure of a company's size and growth potential. It determines the company's ability to raise funds from the market and pursue its business objectives.
Read lesson note on Theory Of Costs (JAMB)
Read lesson note on The Theory Of Demand (JAMB)
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