Which Statement Concerning Shares Is Not True

question 45

Multiple Choice

Which statement concerning shares is not true?

• A) Sometimes shares can be bought back by the company from its shareholders.
• B) The directors can issue shares at any price, the limiting factor is what the market will pay.
• C) Under changes to the Corporations Act shares can no longer be issued payable in instalments.
• D) Directors may decide to issue ordinary shares, preference shares or both.

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Definitions:

Capital Expenditures Budget

A budget that plans for investments in long-term assets like equipment, buildings, and machinery essential for the business's operations and growth.

Operating Budgets

Financial plans for the day-to-day activities of a business, outlining expected revenues and expenses.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess liquidity and manage cash efficiently.

Capital Expenditures Budget

A budget that outlines planned investments in fixed assets, such as machinery, equipment, or buildings, essential for long-term business operations.