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Briefly explain the following terms as used in Capital structure of a company. (i) Registered capital. (ii) Called - up capital. (iii) Issued capital. (iv) Paid - up...

      

Briefly explain the following terms as used in Capital structure of a company.
(i) Registered capital.
(ii) Called - up capital.
(iii) Issued capital.
(iv) Paid - up capital.

  

Answers


sharon
Registered capital - Maximum amount of capital a company expects to raise from
its shares and its also the amount stated in the Articles of Association.

Called - up capital - once the shares have been put to the public for subscription they may be called upon to pay for either all the shares or only a certain amount. The total of the amount that will be paid is called - up capital.

Issued capital - Although the company has registered capital it may decide to put only a portion of these to the public to start with. The total amount released then is issued - capital.

Paid - up capital - The total amount received from subscribers by the company out of the called - up capital.

sharon kalunda answered the question on February 28, 2019 at 13:05


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