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Question 17 Which of the following statements is false? Select the correct answer from the options listed below The bonus issue of a share is a means of raising long -term finance Share issues can be issued in several ways The placing of a share does not involve any invitation to the general public Long-term debt is an example of business long-term finance

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Question 17
Which of the following statements is false?
Select the correct answer from the options listed below
The bonus issue of a share is a means of raising long -term finance
Share issues can be issued in several ways
The placing of a share does not involve any invitation to the general public
Long-term debt is an example of business long-term finance

Question 17 Which of the following statements is false? Select the correct answer from the options listed below The bonus issue of a share is a means of raising long -term finance Share issues can be issued in several ways The placing of a share does not involve any invitation to the general public Long-term debt is an example of business long-term finance

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WilfredProfessional · Tutor for 6 years

Answer

The false statement is "The bonus issue of a share is a means of raising long-term finance".

Explain

## Step1: <br /><br />In order to decide the correct answer to the question, we need to analyse whether each of the display statements is true or false. For multichoice questions, evaluate each listed option's veracity in turn to determine the correct solutions. <br /><br />## Step2: <br /><br />Let's now verify each statement.<br />1. "The bonus issue of a share is a means of raising long-term finance." - This statement is **False**. A bonus issue is a distribution of shares made to existing shareholders out of a company's reserves, rather than buying new shares. It is not a means of long-term finance because the company is not garnering any additional cash from bonus issues.<br />2. "Share issues can be issued in several ways." - This statement is **True**. There are numerous ways in which a corporation can issue shares, such as an initial public offering, rights issue, preferential issue, and so forth.<br />3. "The placing of a share does not involve any invitation to the general public." - This statement - is **True**. Placement is a method of selling securities to a selected group of investors on a non-public basis.<br />4. "Long-term debt is an example of business' long-term finance." - This statement is **True**. A company's long-term borrowings or loans fall into the category of 'long-term finance.'<br /><br />## Step3: <br /><br />We can, therefore, conclude that the first statement in the options is the incorrect one, as it in wrongly links bonus shares with long-term finance.
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