Reference no: EM132656219
Problem 1: Life Ltd would like to issue a large parcel of shares quickly. The best way to achieve this is to:
a) Make a renounceable rights issue.
b) Engage in a private placement.
c) Issue share options to the Chief Executive Officer.
d) Engage an underwriter to conduct a public offering.
Problem 2: Which of the following may be a disadvantage of establishing a business as a company?
a) Shareholders have limited liability.
b) The company can own property in its own right.
c) Managers are given extensive decision-making authority.
d) Companies have strong governance codes.
Problem 3: Preference shares:
a) Are generally reported in the equity section of the Balance Sheet.
b) May carry a lower dividend than ordinary shares.
c) Can usually be redeemed.
d) Do not convey voting rights.