How Does a Bonus Issue of Shares Impact the Equity

question 10

Multiple Choice

How does a bonus issue of shares impact the equity of a company?

• A) Total equity increases.
• B) Total equity decreases.
• C) Only the amount of issued share capital changes.
• D) One equity account increases and another equity account decreases by an equal amount.

---

Definitions:

Efficiently Utilized

Resources or inputs that are used in a way that maximizes the output or outcomes without wasting any potential utility.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced with a fixed amount of resources.

Inefficient

Refers to a situation or process that does not maximize the use of resources or achieve the desired outcome effectively.

Attainable

Something that can be achieved, reached, or accomplished with effort and resources available.