INTRODUCTION TO BUSINESS (MGT211)

Name: M.Awais
VUID: BC210427122
Spring, 2023 Assignment No. 1
Due Date: May 24, 2023.
Total Marks: 10

Answer: The Share Capitals presented in the case are as follows:

1. Issued Share Capital:
The issued share capital represents the segment of the authorized share capital that has been
allocated and distributed among the shareholders. In this instance, the allocated share capital
is specified as Rs. 500,000, which is divided into 25,000 ordinary shares valued at Rs. 20
each. This signifies that the shares that have been made available and assigned to the
shareholders.
2. Authorized Share Capital:
The authorized share capital signifies the highest quantity of shares that a company has the
legal authorization to issue. However, the specific value of the authorized share capital is not
explicitly stated in this passage, so we can assume that Alpha Limited's authorized share
capital is Rs. 500,000. This expected value represents the maximum capital that the company
is permitted to raise through the issuance of the shares.
3. Paid-up share capital:
The Paid-up share capital represents the portion of the share capital that shareholders have
fully paid. Although the exact date of the shareholder’s payment is not explicitly mentioned
in the case. It is indicated that the company's management allocated shares to all applicants
on January 31. This suggests that by January 31. It can be inferred that the candidates have
made the required payments for the shares they received.
4. Called-up Share Capital:
The section of the subscribed share capital that the company has requested shareholders to
contribute is known as called-up share capital. In this scenario, on January 23, the company
received a notification from their bank stating that application funds for 14,500 shares had
been received. This indicates that the company has communicated with the shareholders and
urging them to make payments for the 14,500 shares they have subscribed to.
5. Subscribed Share Capital:
The portion of the issued share capital that shareholders have subscribed to is referred to as
subscribed share capital. In this particular case, on January 20, the company offered 15,000
shares to the public. These shares were made available for subscription to individuals who
expressed interest in acquiring them.