Share capital:
A) relates to one class of shares, with the remaining equity recorded as reserves or retained profits.
B) represents the amount shareholders are guaranteed to receive if the company is wound up.
C) may relate to one or several classes of shares.
D) may be calculated by subtracting liabilities from assets.

Question

Quizplus · Accepted Answer

Share capital may relate to one or several classes of shares, depending on the structure of the company's equity. Therefore, option A and B are incorrect, as they both describe scenarios that do not necessarily apply to all companies. Option D is also incorrect, as the calculation of share capital does not involve liabilities or assets.

Share Capital