| Directions: Each of the following questions consists of two statements, one is Assertion (A) and the other is Reason (R). Give answer: |
| Assertion (A): If a company does not receive the amount called by it on shares, it can forfeit the shares, if authorized by its Articles of Association. |
| Reason (R): Forfeited shares can be reissued by the company on the terms as decided by it. |
A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
B) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
C) Assertion (A) is true but Reason (R) is false.
D) Assertion (A) is false but Reason (R) is true.
Correct Answer: B
Solution :
[b]
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