Didi Ltd offered 10,000 ordinary shares of ₦1.50 each at a discount of 2% which ...
AccountsJAMB UTME
Question
Didi Ltd offered 10,000 ordinary shares of ₦1.50 each at a discount of 2% which were fully subscribed. With regard to the offer above
Options
A)
shares are never offered at a discount; the offer is invalid
B)
the value of shares in the capital account will be lowered by 2%
C)
the company incurs a loss to the tune of 2% of the offer
D)
each of the subscribers loses 2% of investment
The correct answer is C.
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This is a partnership business type that when a company or the business incurs profit or loses, both profits or losses are shared on each member's shares depending on the agreed ratio.