Simone Ltd Issued 20 000 Shares with an Issue Price

question 8

Multiple Choice

Simone Ltd issued 20 000 shares with an issue price of $2.00 per share. The full price has been paid to the company. What is the maximum additional amount the shareholders can be asked to contribute if Simone Ltd cannot pay its debts?

• A) $Nil.
• B) $2.00 per share or $40 000.
• C) $1.00 per share or $10 000.
• D) There is no limit on the amount the shareholders can be asked to contribute.

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Definitions:

Low Fitness

Refers to individuals having fewer offspring than average, contributing less genetic material to the next generation.

Resistant Populations

Groups of organisms that have developed the ability to withstand environmental pressures, such as chemicals or diseases, that would normally be harmful.

Directional Selection

A type of natural selection in which one extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time in the direction of that phenotype.

Selection Differential

A measure of the difference between the mean phenotype of the selected parents and the mean phenotype of the general population.