Which of the Following Is Not a Reason for a Company

question 20

Multiple Choice

Which of the following is not a reason for a company making a bonus issue of shares?

• A)To use cash.
• B)As a signal to the market of the company's confidence in its future.
• C)To reduce its share price when it has become too high.
• D)None of the above, i.e., all are reasons for making a bonus issue.

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Definitions:

Imaginary Audience

The belief often held by adolescents that they are constantly being observed and judged by others, as if they are the center of attention in a crowd.

Self-Conscious

The state of being overly aware of oneself, one’s appearance, or one’s actions, often leading to feelings of awkwardness or anxiety.

Lawrence Kohlberg

An American psychologist renowned for his theory of moral development, which proposes that individuals progress through stages of moral reasoning as they mature.

Preconventional

The first level in Kohlberg's stages of moral development, where moral reasoning is based primarily on external consequences and individual needs.