Use the Following Information to Answer Questions

question 13

Multiple Choice

Use the following information to answer questions
A company’s capital consists of 50 000 ordinary shares issued at £2 and paid to £1 per share.
On 1 September, a first call of 50c was made on the ordinary shares. By 30 September, the call money received amounted to £22 500. No further payments were received, and on 31 October, the shares on which calls were outstanding were forfeited. On 15 November, the forfeited shares were reissued as paid to £1.50 for a payment of £1 per share. The appropriate cash amount from the reissue was received on 19 November. Costs of reissue amounted to £2 000. The company’s constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited.

-The amount of the surplus payable to the shareholders whose shares were forfeited is:

• A) £5000;
• B) £500;
• C) £2500;
• D) £3000.

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Definitions:

Supreme Court

A rephrased reiteration of the United States Supreme Court, it's the apex judicial authority in the United States, responsible for interpreting the Constitution and federal law.

State Or Federal Court

Jurisdictional bodies in the U.S. legal system with authority to hear and resolve disputes at the state or federal level, respectively.

Procedural Rules

Refers to the guidelines and methods established by courts and administrative agencies to govern the process of legal actions and proceedings.

Likelihood Of Winning

The probability or chance of a party prevailing in a legal case based on the evidence and legal arguments presented.