Which of the Following Items Is Generally NOT Included in a Directors

question 3

Multiple Choice

Which of the following items is generally NOT included in a directors' report to shareholders?

• A) Names of directors
• B) Principal activities of the company
• C) Budgeted net profit for following year
• D) Significant changes in the company's state of affairs

---

Definitions:

Flotation Costs

The expenses incurred by a company in issuing new securities, including legal, administrative, underwriting fees, and other associated costs.

Debt-Equity Ratio

An economic indicator showing the comparative mix of owner's equity and loans in funding a company's assets.

External Financing

Funds raised from outside the business, typically through borrowing or the issuance of equity.

Flotation Cost

The total costs associated with issuing new stocks or bonds, including underwriting, legal, and registration fees.