True or false about share capital

Exercise and reference answers

Questions

1. Statement is true

   No

   Statement

   Issued capital can exceed authorised capital.

2. Statement is true

   Yes

   Statement

   Subscribed capital is the part the public applied for.

3. Statement is true

   Yes

   Statement

   Called up capital is what the company has asked for.

4. Statement is true

   Yes

   Statement

   Paid up capital is money actually received.

5. Statement is true

   No

   Statement

   Unissued capital has already been offered.

Instructions

Decide whether each statement is true or false.

Explanation