A Rights Issue Differs from a Bonus Issue of Shares

question 9

Multiple Choice

A rights issue differs from a bonus issue of shares in that:

• A) after a bonus issue there is a greater number of shares in existence, unlike rights.
• B) shares that are cum-bonus are renounceable.
• C) the purpose of a bonus issue for a company is not to raise more funding.
• D) only listed companies have rights issues.

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Definitions:

Obvious Dangers

Hazards or risks that are apparent and should be reasonably recognized by an individual, reducing or eliminating liability for injuries resulting from such dangers.

State-of-the-Art Defense

The state-of-the-art defense is a legal argument used in product liability cases to claim that the product was made in accordance with the highest level of technology and knowledge available at the time of manufacture.

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused by their actions, without the need to prove negligence or fault.

Strict Product Liability

Liability under which, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.