In Which Circumstance Will It Be Necessary to Determine the Fair

question 6

Multiple Choice

In which circumstance will it be necessary to determine the fair value of an entity's own equity instruments?

• A)where the entity is preparing for listing
• B)where the entity undertakes a business combination and issues its own equity instruments in exchange for a business
• C)where the entity undertakes a share buy-back
• D)where there is a change in the shareholding of the entity.

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Definitions:

Competitive Advantage

A unique attribute or competency a company possesses that enables it to outperform its competitors, providing it with a market advantage.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones due to their trust and satisfaction with the brand.

Rewards Program

A marketing strategy designed to encourage customer loyalty by offering incentives, such as points, gifts, or discounts, for frequent or sizable purchases.

Marketing Strategy

a company's plan designed to promote products or services to reach a specific target market, involving decisions on product, price, place, and promotion.