Share Capital

question 62

Multiple Choice

Share capital:

• A) Relates to one class of shares, with the remaining equity recorded as reserves or retained profits.
• B) Represents the amount shareholders are guaranteed to receive if the company is wound up.
• C) May relate to one or several classes of shares.
• D) May be calculated by subtracting liabilities from assets.
• E) None of the given answers.

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Definitions:

Coffee Futures

Financial contracts obligating the buyer to purchase coffee, and the seller to sell coffee, at a predetermined future date and price.

Pounds

A unit of mass commonly used in the British imperial and United States customary systems, equivalent to 0.453592 kilograms.

Marking to Market

The practice of updating the value of a financial instrument to reflect its current market value.

Delivery

The process of transporting goods from one location to another or the act of handing over possession or control.