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Question

From which of the following, companies cannot buy its own shares?

The correct answer is

Existing equity shareholders on a disproportionate basis

The correct answer is "Existing equity shareholders on a disproportionate basis". Companies cannot buy their own shares from existing shareholders in a disproportionate manner.

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Important Questions from Corporate Accounting

  1. In order to compensate the investors, what kind of debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures?

  2. If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to:

  3. The part of capital which is called-up only on winding up is called ______.

  4. In order to compensate the investors, what kind of debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures?

  5. If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to:

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