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:

Input Prices

The costs associated with the purchase of the raw materials, labor, and other inputs required in the production of goods or services.

Short- And Long-Run

Terms used in economics to differentiate between time periods: short-run where at least one input is fixed and long-run where all inputs are variable.

Classroom Experiment

An educational exercise or activity conducted in a classroom setting to demonstrate a principle or theory through practical experience.

Willing To Sell

The readiness or openness of a seller to part with goods or assets at a certain price.