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1. Which of the following statements are false? (you may choose more than one statement) A The issue of ordinary shares will not dilute ownership

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1. Which of the following statements are false? (you may choose more than one statement) A The issue of ordinary shares will not dilute ownership of the company B A nights issue will not dilute ownership of the company C A bonus issue is a means of raising finance for the business DA company can decide on the level of dividends they pay out to ordinary shareholders each year 2. In the case of decrease the operating cash cycle, which one of the following acti should be taken? 1 A Delay payments to suppliers B Increase the inventory level while maintaining constant sales Increase the period of time for which credit is granted to customers Decrease the rate at which the average inventory is sold 3. Point out one of the following that will increase the operating cash cycle? Increase in inventory days B Decrease in trade receivable days Increase in trade payable days D Decrease in inventory day 4. Select the statement that is TRUE. A A preference shareholder will be paid the same rate of dividend each year Holding preference shares in a business is more risky than holding ordinary shares B Preference shareholders can vote at annual general meetings (AGM). Preference shares are worth more than ordinary shares D

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