Which Statement in Relation to a Bonus Issue of Shares

question 26

Multiple Choice

Which statement in relation to a bonus issue of shares is not true?

• A) When there is a bonus issue, there must be a transfer from share capital to reserves.
• B) A bonus issue capitalises reserves.
• C) The proportion of the company's shares held by a shareholder will not change after the issue.
• D) None of the above, i.e. all are true statements.

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Definitions:

Grassroots Change

Change that originates from the bottom up within an organization or society, often driven by the collective action of its members rather than by leadership.

Top Management

The highest level of executives and administrators in an organization, responsible for strategic decisions and overall operations.

Organizational Development (OD)

Organizational Development (OD) is a field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.

Mentor Young Talent

The act of experienced individuals providing guidance, knowledge, and support to less experienced, often younger, individuals.