In Which Situation(s)may Shares Be Issued in Return for Something

question 19

Multiple Choice

In which situation(s) may shares be issued in return for something other than cash?

• A) Shares can be issued in return for a capital contribution in kind.
• B) New shares may be issued as the result of a capitalization of reserves.
• C) New shares may be the result of the conversion by a creditor of their claim into shares.
• D) All of these

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or other activity of a business, such as materials and labor costs.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including rent, salaries, and insurance costs.

Total Revenue

The overall amount of money generated by a business from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.

Variable Costs

Costs that change in proportion to the level of output or activity.