Which of the Following Is Not a Reason That a Company

question 19

Multiple Choice

Which of the following is not a reason that a company may issue options?

• A) To reward and motivate employees.
• B) To set in place a programmed raising of future funds.
• C) To make the current share issue less attractive.
• D) As an additional benefit to the current share issue.

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Definitions:

Income Ratio

A financial metric that compares different streams of income to assess financial performance or profitability.

Capital Balances

Capital balances indicate the amount of equity a partner or shareholder has in a business, reflecting the net contributions and withdrawals, plus their share of profits or losses.

Income and Losses

Income and losses refer to the financial results of a company's operations, with income indicating profit and losses indicating expenses exceeding revenues.

Capital Interest

The portion of an investment or interest in a partnership that represents the owner's or partner's share of the capital.