alleryStart learning →A company is best described as an artificial person created by:
- a partnership deed
- law
- the stock exchange
- a single individual
Show answer and solution
Correct answer: B. law
A company is an artificial person created by law.
MP Board Class 12 (MPBSE) Accountancy — practice by topic
Browse 40 questions across 3 Accountancy topics. Choose what you want to revise, then open a question to check its answer and worked solution.
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A company is best described as an artificial person created by:Read the answer and worked solution →The maximum amount of capital a company is authorised to raise, as stated in its Memorandum, is the:Read the answer and worked solution →That part of the issued capital which the public has agreed to subscribe is the:Read the answer and worked solution →The portion of the subscribed capital that the company has asked shareholders to pay is the:Read the answer and worked solution →
Worked practice questions
The maximum amount of capital a company is authorised to raise, as stated in its Memorandum, is the:
- Reserve Capital
- Authorised (Registered) Capital
- Paid-up Capital
- Called-up Capital
Show answer and solution
Correct answer: B. Authorised (Registered) Capital
Authorised (registered/nominal) capital is the maximum stated in the Memorandum.
That part of the issued capital which the public has agreed to subscribe is the:
- Subscribed Capital
- Authorised Capital
- Nominal Capital
- Reserve Capital
Show answer and solution
Correct answer: A. Subscribed Capital
Subscribed capital is the part of issued capital the public agrees to take.
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