- 1 Marks
BCL – L1 – SA – Q59 – Types of Capital
Question
The capital of a company is represented by which of the following?
A shares
B properties
C balance sheet
D profit
E All of these
Answer
A
Explanation:
The correct answer is A because a company’s capital is primarily represented by its shares, including equity and preference shares, which form the financial base of the company. Properties (B) are assets, not capital; the balance sheet (C) reflects capital but doesn’t represent it; profit (D) is earnings, not capital; and E is incorrect as only A is accurate.
- Tags: Company Law, Equity shares, Preference Shares, Share Capital
- Level: Level 1
- Uploader: Samuel Duah