Which of the Following Statements Is Not Correct in Relation

question 8

Multiple Choice

Which of the following statements is not correct in relation to continuous disclosure?

• A)ASX Listing Rules require that a company immediately notify the ASX of any information concerning the entity of which it is or becomes aware and which a reasonable person would expect to have a material effect on the price or value of securities of the firm.
• B)If information is confidential (i.e.not known outside the company),then a company may choose not to disclose if a reasonable person would not think it necessary to disclose and the information is insufficiently clear or a trade secret,subject to incomplete proposals or negotiations.
• C)Continuous disclosure is the specific requirement of listed entities under ASX Listing Rule.There is no legislative force to the requirements.
• D)Auditors play a crucial role in disclosure,because they have an obligation to report to the members through an auditor's report.

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Definitions:

Net Income

The final income of a business once expenses and taxes are removed from the total revenue.

Invested Capital

Total capital invested in a company by its shareholders and debt holders, used for calculating returns generated by a company.

Assets

Assets represent resources owned or controlled by a business or individual that are expected to produce economic value or benefit in the future.

Total Assets Turnover Ratio

A measure of a firm's efficiency in using its assets to generate sales, calculated by dividing sales by total assets.