Question

Public deposits of a company cannot exceed _____ per cent of its share capital and free reserves.

• A. 15
• B. 20
• C. 25
• D. 30

Answer 1

Answer: (C)

25

Public deposits refers to the unsecured securities which is invited from the public. It is mainly used to finance the working capital of the company. Public deposits of a company cannot exceed 25 per cent of its share capital and free reserves.