Simone Ltd Issued 20 000 Shares with an Issue Price

question 8

Multiple Choice

Simone Ltd issued 20 000 shares with an issue price of $2.00 per share. The full price has been paid to the company. What is the maximum additional amount the shareholders can be asked to contribute if Simone Ltd cannot pay its debts?

• A) $Nil.
• B) $2.00 per share or $40 000.
• C) $1.00 per share or $10 000.
• D) There is no limit on the amount the shareholders can be asked to contribute.

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