BCL – L1 – SA – Q59 – Types of Capital

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

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.