Company Law MCQ: Share Capital vs Reserves

company du_llb beginner mcq_debate

Maine aur meri doston se ek sawal hai. Yeh test ka ek MCQ hai, kya aapke paas kuch faisla hai ki iski sahi reply kitni hai?

MCQ: Share Capital mein Reserve Fund ka add karke kiya jaata hai ya nahin?

Meri doston ki kahaani hai ki Reserve Fund ek separate Fund hai, Share Capital se alag, isliye add nahin kiya jaata. Lekin main kahaan hu ki yeh ek separate Fund hai, lekin Share Capital mein Reserve Fund ka hissa shamil hai. Kyunki dono share capital ka hissa hai.

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Omkar ยท Legal Eagle

Share Capital vs Reserves: Key Difference - Share capital is the amount of money received by the company from shareholders in exchange for shares. Reserves are created from profits and are a part of Shareholders' Equity. Think of it like a bank account: Share capital is the opening balance and Reserves are the savings. When you borrow money, Reserves grow but you still have to repay the Share Capital. Remember, Share Capital is permanent, but Reserves are not.