WAEC Commerce 2014 Paper

Concept:Authorized share capital is the total value of shares a company is legally allowed to issue.Explanation:It is calculated by multiplying the number of authorized shares by the nominal value per share.Number of authorized ordinary shares $= 40{,}000{,}000$Nominal value per share $= N4$Authorized share capital $= 40{,}000{,}000 \times 4 = N160{,}000{,}000$The issued shares of $25{,}000{,}000$ are not used for this calculation.Answer:A. N160,000,000