.14. The capital of a company is divided into number of parts. Each part is called as: A. Dividend B. Profit C. Interest D. Shares. (2) Select one and explain?

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Q.14. The capital of a company is divided into number of parts. Each part is called as:
A. Dividend
B. Profit
C. Interest
D. Shares. (2)
Select one and explain?

Expert Solution
Step 1: Introduction:

Capital is the sum invested in the business to support its operations. Capital in a firm is referred to as share capital. The capital clause of a Memorandum of Association must include information on the type and number of shares that make up the company, as well as the capital with which the corporation is registered. A corporation is not permitted to issue share capital in excess of the limits specified in the MA's Capital clause without amending it. Regarding dividends paid at predetermined rates or amounts, or dividends that must be paid before dividends are given to holders of equity shares, it is entitled to preferential treatment.

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