Johan Was Considering Selling Shares as a Source of Funds

question 58

Multiple Choice

Johan was considering selling shares as a source of funds but was concerned about:

• A)damaging his corporate image.
• B)the loss of voting control of the company.
• C)the effect that might have on future financing.
• D)estate planning.

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Definitions:

Petty Cash

Petty cash is a small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.

Miscellaneous Expense

Expenses that are not classified under any standard expense categories within the accounting system, often of a small or irregular nature.

Days' Cash

A measure of a company's financial stability, indicating how many days the company can continue to operate using only its available cash without needing additional income.

Year-end Value

The financial value of an asset or account as recorded at the end of the fiscal year, which is important for annual financial reporting.