In Respect to the Issue of Shares by Companies, Which

question 7

Multiple Choice

In respect to the issue of shares by companies, which of the following statements is incorrect?

• A) Companies can convert ordinary shares into preference shares.
• B) Companies can only issue ordinary shares.
• C) Companies can issue any specified number of shares at any price.
• D) Companies can issue both ordinary and preference shares.

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Definitions:

Junction Point

A point in an electrical circuit where multiple conductors or components are connected.

Current Paths

Paths followed by electrical current in a circuit.

Series Circuit

An electrical circuit in which components are connected end-to-end such that current flows through each component in turn without branching.

Current Flow

The passage of electrons through a conductive material, powering electrical devices.