In Which Circumstance Will It Be Necessary to Determine the Fair

question 28

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 an initial public offering of shares.
• 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 the entity makes a right issue of shares to existing shareholders.

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Definitions:

Positive Reinforcer

A stimulus that, when presented after a response, increases the likelihood of that behavior occurring in the future.

Associated

Being connected or related to something else, either in terms of relationships, functions, or characteristics.

Stimulus Generalization

The psychological phenomenon where a learned response to a specific stimulus is evoked by similar stimuli, indicating a transfer of learning.

Similar Manner

Refers to actions or processes that are alike or nearly identical in method or execution.