The Most Important Difference Between a Bonus Share Issue and a Rights

question 43

Multiple Choice

The most important difference between a bonus share issue and a rights issue, from the issuing company's point of view, is that they:

• A)require different accounting practices.
• B)benefit different groups.
• C)have different effects on cash flow.
• D)none of the above.

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Definitions:

Illusory Promise

A statement that appears to be a promise but is too vague or lacks commitment to be legally binding and enforceable as a contract.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise if the other party has reasonably relied on that promise to their detriment.

False Pretenses

The act of knowingly making untrue statements or deceiving others to obtain goods, money, or services unlawfully.

Mutual Exchange

An agreement where two parties exchange goods, services, or other considerations of value, with each party benefiting from the transaction.