The capital obtained by issue of shares is knows as:
(a) Share capital (b) Borrowed capital
(c) Working capital (d) Operating capital
Answers
The capital obtained by issue of shares is known as Share Capital
So answer is share capital
Share capital refers to the total amount invested by individuals, and /or institutions in the company for it to carry out its business. These investments are divided into small portions or units called a share. A business limited by shares must have a share capital. In a simple definition, a share is a share in the share capital of the company. Shares are ownership rights given to an individual with a dividend payment in case the company generates good profits and the value of these shares goes up and down based on the business performance as well as other factors.
Every company requires funds for general business operation and growth, which can either be obtained through owner’s equity, creditors, banks, or other financial institutions Generally, companies limited by share obtain these funds through the issue of shares that do not comprise any interest liability or debt and add on to the issued Share Capital.
So from this, we can say that the capital obtained by the issue of shares is termed as Share Capital