Which of the Following Types of Owners' Equity Transactions Would

question 28

Multiple Choice

Which of the following types of owners' equity transactions would NOT require authorisation by the board of directors?

• A) Share issues
• B) Share redemptions
• C) Declaration of dividends
• D) All of the above would require authorisation.

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Definitions:

Registration Under

The process of officially recording or enlisting something or someone under certain conditions or regulations, often related to securities laws.

1933 Act

A U.S. federal law, officially known as the Securities Act of 1933, enacted to ensure more transparency in financial statements to protect investors from fraud.

Working Capital

The difference between a company's current assets and its current liabilities, indicative of its operational liquidity.

Tender Offer

is a public solicitation by a party proposing to buy shares from shareholders of a publicly-traded company at a specified price for a certain period.