The Corporations Act Specifies Five Types of Share Buy- Back

question 18

Multiple Choice

The Corporations Act specifies five types of share buy- back schemes including:

• A)an equal access scheme applying only to ordinary shares
• B)a selective buy- back
• C)an employee share scheme buy- back
• D)all of the above

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Definitions:

Accrual Basis

A bookkeeping approach that logs income and expenses at the time they are accrued, without taking into account the timing of the cash flows.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recognized when cash is paid out.

Administrative Expenses

Expenses incurred that are not directly tied to a specific function like manufacturing, production, or sales, usually including items like rent, utilities, and management salaries.

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, salaries, and maintenance, but not including cost of goods sold.