BCL – L1 – SA – Q72 – Types of Capital

Definition of a company’s share capital.

Question

What is the meaning of the Share capital of a company?

A equity share capital

B preference share capital

C equity and preference share capital

D equity and preference share capital and debentures

Answer

Explanation:
The correct answer is C because a company’s share capital includes both equity share capital and preference share capital, representing the total shares issued. Debentures (D) are debt instruments, not share capital. Options A and B are incomplete as they exclude one type of share capital.

Tags: Company Law, Equity shares, Preference Shares, Share Capital
Level: Level 1

Topic: Types of capital and the financing of companies

Uploader: Samuel Duah