issue of shares to the directors of a company.
issue of shares by a company only to the founders of the company
right of shareholders to vote on any issue
issue of shares to shareholders on favorable terms
Correct answer is B
A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it is a non-dilutive pro rata way to raise capital. Rights issues are typically sold via a prospectus or prospectus supplement. A rights issue is when a company issues its existing shareholders a right to buy additional shares in the company. The company will offer the shareholder a specific number of shares at a specific price.
The main objective of corporate mergers is to?
minimize the effect of taxation
increase financial advantage
facilitate profit maximization
enhance economies of scale
Correct answer is D
The main benefit of a merger is to gain more market share. This increases a firms monopoly power and enables higher prices (this is why mergers are often regulated by government.)
When the goods are distributed to the wholesalers
When the goods reaches the retailer
When the goods reaches the final consumers
When the goods are fully packaged
Correct answer is C
production ends when it reaches the final consumer
production doesn’t end until the goods reaches its final consumers
Cartel
Syndicate
Trust
Integration
Correct answer is A
A cartel is a group of apparently independent producers whose goal is to increase their collective profits by means of price fixing, limiting supply, or other restrictive practices
What is the difference between current assets and current liabilities?
Working capital
nominal capital
capital employed
issued capital
Correct answer is A
The difference between current asset and current liability is known as working capital which represents operating liquidity available to business. Working capital is the capital of a business which is used in its day-to-day trading operations, calculated as the current assets - the current liabilities.
Working capital, also known as net working capital, is the difference between a company's current assets, like cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, like accounts payable.