13) 14) The buying back of a financial liability or equity instrument is referred to as: B) allotment A) call Q) application D) redemption 15) When there are applications for more shares than are available for purchase, it is referred as a/an: A) under subscription C) Oversubscription B) underwritten issue D) forfeiture 16) The journal entry used to record money due on the allotment of shares is A) Debit Allotment Credit Share Capital B) Debit Bank Credit Share Capital C) Debit Share Capital Credit Allotment D) Debit Allotment Credit Application 17) A form of debt which can be converted to shares after a set period of time is referred to as a: A) unsecured note C) mortgage B) lease D) convertible note 19) Which of the following is a major advantage of public companies? A) being able to invite the public to invest in them through the subscription to share or debt capital B) being subject to more government regulation than proprietary companies C) being subject to less government regulation than proprietary companies D) none of the above 20) Which of the following is a characteristic of preference shares? A) they may have restricted voting rights have an entitlement to assets remaining after all obligations have been satisfied C) they may be preferential as to returm of capital D) both A and C