B Com Exam  >  B Com Questions  >  Under what circumstances can a company issue ... Start Learning for Free
Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?
  • a)
    To reward shareholders for being early investors
  • b)
    To increase its share capital
  • c)
    To reduce its accumulated losses
  • d)
    To finance a new project
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Under what circumstances can a company issue fully-paid bonus shares u...
According to Section 78 of the Companies Act, a company can utilize the premium amount to write off preliminary expenses, discount on issue of shares, underwriting commission, expenses on issue, and also to pay premium on redemption of preference shares or debentures. One of the purposes is to reduce accumulated losses.
Explore Courses for B Com exam
Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer?
Question Description
Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Under what circumstances can a company issue fully-paid bonus shares using the premium amount collected?a)To reward shareholders for being early investorsb)To increase its share capitalc)To reduce its accumulated lossesd)To finance a new projectCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice B Com tests.
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev