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:

Independent Appraiser

A certified professional who provides an unbiased opinion on the value of an asset, often used in real estate transactions, without any direct connection to the buyer or seller.

Journal Entry

A record in accounting that represents each transaction with debits and credits in financial accounts.

Plant Assets

Long-term tangible assets that are used in the production of goods or services and are not intended for resale, including buildings, machinery, and equipment.

Double-Declining Balance

An accelerated method of depreciation where an asset loses value at double the rate of traditional straight-line depreciation.