Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A)Most companies see retained profits as the least likely source of finance.
• B)The law quite clearly specifies the size of the non-distributable portion of capital a firm must hold back.
• C)Preference capital redeemed by a company is always held in retained profits.
• D)A company is not allowed to acquire and hold its own shares.

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Definitions:

Calcaneus

The largest bone in the foot, forming the heel and serving as a foundation for the rear part of the foot.

Lateral Collateral Ligament

A ligament located on the outer side of the knee, contributing to the joint's stability by preventing lateral (sideways) movement.

Cruciate Ligaments

Major ligaments in the knee that cross each other, crucial for stabilizing the knee joint during movement.

Calcaneofibular Ligament

A ligament located in the foot that connects the fibula (smaller bone in the lower leg) to the calcaneus (heel bone), involved in stabilizing the ankle.