Use the following information to answer the question Taurus Ltd was incorporated with the legal...

WAEC 2023

Use the following information to answer the question

Taurus Ltd was incorporated with the legal right to issue five million ordinary shares. The company has issued three million of the shares at GH⊄ 0.60 per share. To date, the company has made calls of GH⊄ 0.40 per share. All calls have been paid by shareholders except for GH⊄ 100,000 owing from one shareholder.
The authorized number of shares is

A. 3,000,000
B. 8,000,000
C. 5,000,000
D. 100,000

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Correct Answer: Option C

Explanation

The authorized number of shares refers to the maximum number of shares a company is legally allowed to issue.

According to the information provided, Taurus Ltd was incorporated with the legal right to issue five million ordinary shares.

Therefore, the authorized number of shares for Taurus Ltd is 5,000,000.

Hence, the correct answer is 5,000,000.

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