The Effect of a Bonus Issue to All Shareholders on (A)net

question 65

Multiple Choice

The effect of a bonus issue to all shareholders on (a) net asset backing per share,(b) each shareholder's share of net assets and (c) market capitalisation is:

• A) (a) The net asset backing per share will decrease; (b) each shareholder's share of net assets will remain the same; (c) evidence suggests that on average the market capitalisation will increase.
• B) (a) The net asset backing per share will increase; (b) each shareholder's share of net assets will increase; (c) evidence suggests that on average the market capitalisation will remain the same.
• C) (a) The net asset backing per share will decrease; (b) each shareholder's share of net assets will decrease; (c) evidence suggests that on average the market capitalisation will remain the same.
• D) (a) The net asset backing per share will remain the same; (b) each shareholder's share of net assets will decrease; (c) evidence suggests that on average the market capitalisation will decrease.

Prioritize community actions immediately following a disaster.

Evaluate the adequacy of a community's disaster plan.

Identify the agencies responsible for developing and testing community disaster plans.

Understand the roles and differences between the American Red Cross, FEMA, and other disaster management agencies.

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Definitions:

Nonprofit Organizations

Organizations that operate for charitable, educational, cultural, or social welfare purposes, using surplus revenues to further achieve their goals rather than distributing them as profit or dividends.

Revenue Over Expenses

A financial metric indicating profitability, where income surpasses the costs incurred in generating it.

Shareholders

Individuals or entities that own shares in a corporation, making them co-owners of the business and entitling them to dividends and certain rights.

Treasury

The department within a government or corporation responsible for managing financial operations, including revenue, expenditure, and debt.