Which of the Following Statements About a No Liability Company

question 71

Multiple Choice

Which of the following statements about a no liability company is incorrect?

• A) A no liability company will issue shares on a partly paid basis.
• B) In Australia only mining companies can list as a no liability company.
• C) A no liability company may also offer shareholders an option to sell shares back to the company if the company exploration is not successful.
• D) If a no liability gold-mining company discovers gold then for the product phase the company may issue a further call on the partly paid shares.

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Definitions:

Disbursements

Payments made by a business, usually consisting of expenses, investments, and other financial outlays.

Lower Cash Balance Limit

The minimum amount of cash that a business aims to maintain in its cash reserves to meet emergency or operational needs.

Miller-Orr Model

The Miller-Orr Model is a financial model used to manage cash flow and determine the optimal balance between holding cash versus short-term investments.

Disbursements

Payments made by a business, often related to operational expenses or loan repayments.