Which Three of the Following Statements Correctly Relate to Shares

question 11

Multiple Choice

Which three of the following statements correctly relate to shares or shareholders?

• A) Ordinary shareholders are the last in the queue to have their claims met.
• B) The shareholder will always receive back the original capital invested.
• C) Shareholders have the right to exercise control over the company.
• D) Ordinary shares represent the equity share capital of the firm.

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Definitions:

Revoked

The act of officially canceling or withdrawing something, such as a license, permission, or legal right.

Invitation to Treat

An indication by a person that they are prepared to negotiate a deal, opening discussions for an offer, but it is not in itself a binding offer.

Catalogue

A comprehensive list or inventory, often detailed and organized, of items for sale or collection.

Breach of Contract

An infringement or violation of the terms agreed upon in a contract, resulting in legal liability.