X Question 2/5 Worth 5 points Which of the following statements is true? Reserves are usually in the form of cash Reserves are profits and gains that have been made by the company and that still form part of the shareholders' (owners') claim. Reserves represent a claim by the lenders to the business. Retained profit (retained earning) is a reserve of profit that has been paid out to shareholders. Question 3/5 Worth 5 points Which of the following is NOT a characteristic of bonus share issues? They convert a reserve into share capital. They are also known as share dividends. They lower the value of an individual share. Reserves represent a claim by the lenders to the business. Question 4/5 Worth 5 points A company may decide to raise additional funds by using which of the following? Rights issues Share price Retained profit Loan notes 2 attempts remaining Submit