Reference no: EM132759282

Problem 1: When a newly established company issues shares for the first time, the directors will issue the shares at:

Select one:

a. a price established in consultation with ASIC.

b. the market price.

c. the price of $1 per share.

d. the highest price that they expect that the shareholders will be prepared to pay.

Problem 2: The objective of allocating profits and losses is to reward each partner fairly for the resources and services contributed to the partnership. Which of the following factors would not be directly relevant in negotiating a profit and loss sharing agreement for a partnership?

Select one:

a. Work done by each partner in the partnership.

b. Capital contributed by each partner to the partnership.

c. The size of each partner's non-partnership assets.

d. The risks assumed by each partner.