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The minimum s...

Question

The minimum share application money is _______% of the nominal value of the shares.

A

(a) 2

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B

(b) 5

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C

(c) 20

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D

(d) 50

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Solution

The correct option is B
(b) 5

The minimum share application money is 5% of the nominal value. The money received by the company when it issues shares to the public is known as application money. Allotment is made to the shareholders once the application money is received.

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