The maximum amount beyond which a company is not allowed to raise funds, by issue of shares, is its _______________.

Issued Capital

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Reserve Capital

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Authorised Capital

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Subscribed Capital

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Solution

The correct option is B Authorised Capital
The maximum amount beyond which a company is not allowed to raise funds by issue of shares isauthorized capital. Authorized capital, also known as nominal capital, represents the securities that are designated for shareholders.

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