Lion Ltd Issued 20 000 Shares with an Issue Price

question 43

Multiple Choice

Lion Ltd issued 20 000 shares with an issue price of $1.30 on which the full price has been paid to the company.The maximum additional amount the shareholders can be asked to contribute if the company cannot pay its debts is:

• A)$1.30 per share or $26 000
• B)Nil
• C)30c per share or $6 000
• D)There is no limit on the amount the shareholders can be asked to contribute

---

Definitions:

Statement of Financial Position

A financial statement that shows an organization's assets, liabilities, and net equity at a specific point in time, often referred to as a balance sheet.

Perpetuity

A duration of ownership or investment that lasts indefinitely, often used in the context of trusts or investments that generate an eternal income stream.

Diverse Sources

Diverse sources, in financial contexts, refer to obtaining funds or resources from a variety of origins to reduce dependency on a single source and increase financial stability.

Maximizes Autonomy

The act of increasing the self-governing power or independence of an individual or entity, allowing for greater self-determination and freedom from external control.