A Bonus Issue

question 6

Multiple Choice

A bonus issue

• A)gives shareholders additional shares without requiring any payment
• B)always results in an increase in paid-up capital
• C)can not be paid from cancelled forfeited shares
• D)all of the above

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Definitions:

Ambiguous

Describes something that can be understood in more than one way or that is unclear, often leading to confusion or misinterpretation.

Coverage

In the context of insurance, it refers to the extent or range of protection provided under an insurance policy against various risks or events.

Term Insurance

A type of life insurance policy that provides coverage for a specific period of time, or term, offering a death benefit to beneficiaries if the insured passes away during the term.

Whole Life Insurance

A type of life insurance policy that offers coverage for the insured's entire lifetime, typically including a savings component.