Which of the Following Equity Instruments Would Be Considered to Be

question 37

Multiple Choice

Which of the following equity instruments would be considered to be ordinary shares for the purposes of AASB 133?

• A) ordinary shares that receive a dividend at the discretion of the ownership group or its representatives
• B) preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate
• C) ordinary shares that have the right to a cumulative fixed rate of dividends
• D) ordinary shares that receive a dividend at the discretion of the ownership group or its representatives and preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate

Grasp the significance and outcomes of major tax cuts on the economy and budget deficits.

Describe the goals of fiscal policy and the concept of national debt.

Discern the implications of foreign ownership of national debt.

Understand the repercussions of attempting to rapidly pay off the national debt and the effects of fiscal policy measures during recessionary periods.

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Definitions:

Concessionary Bargaining

A negotiation process where the union agrees to reduce costs or forego benefits in exchange for something else, such as job security.

Economic Conditions

Economic Conditions refer to the current state of the economy in a given area, including factors like unemployment rates, inflation, and GDP growth.

Organization Survival

The ability of a company to continue operating and growing over the long term, facing competition, market changes, and environmental challenges.

Multiemployer Bargaining

A process where multiple employers negotiate collectively with a single labor union to establish one agreement that applies to all employers involved in the negotiation.