A Corporation's Distribution of Additional Shares to Its Shareholders Without

question 75

Multiple Choice

A corporation's distribution of additional shares to its shareholders without the receipt of any payment in return is called a:

• A) Share dividend.
• B) Share subscription.
• C) Premium on share.
• D) Discount on share.
• E) Treasury share.

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Definitions:

Total Liabilities

The total amount of obligations owed by a company to third parties, including loans, accounts payable, mortgages, and other debts.

Debt Ratio

A financial ratio that compares a company's total debt to its total assets, indicating the degree of leverage and financial risk.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms, including both current and non-current assets.

Equipment

Tangible property used in the operations of a business, not intended for sale, with a useful life extending beyond a year.