The Reasons Why a Company May Wish to Reduce Its

question 12

Multiple Choice

The reasons why a company may wish to reduce its share capital include:

• A)it pursues a rationalisation of the operations of a parent and its subsidiary company
• B)it has excess cash which it wishes to return to shareholders
• C)capital has been lost or is no longer represented by assets; it wishes to cancel uncalled capital on contributing (partly paid)shares
• D)all of the above

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Definitions:

Predictive Validity

The degree to which a measurement or test score can forecast future success in a related activity or result.

Intelligence Quotient

A measure of a person's intellectual abilities in relation to their age group, commonly expressed as a score derived from standardized tests.

Sternberg

Refers to Robert Sternberg, an American psychologist known for his theory on intelligence, creativity, wisdom, and love.

Terman

Lewis M. Terman, an American psychologist who is best known for his revision of the Stanford-Binet Intelligence Scales and studies on gifted children.