Question
Which of the following statements is true with regard to
declaring and issuing of Bonus Shares?Solution
Explanation:
A Bonus issue involves issuing fully paid-up shares to existing shareholders out of free reserves or securities premium. It reduces reserves but doesn’t affect the total capital employed or cash position. It’s not the same as dividends, as it involves capitalizing profits, not distributing them.
- Select the word segment that can substitute the bracketed word segment correctly and complete the sentence meaningfully.
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In the question below, three sentences are given with a part highlighted in bold. From the options, choose the phrase that can replace the highlighted ...
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