BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Issued at Discount
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Issued at Premium
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Issued at Par
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All of the Above
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Detailed explanation-1: -When the shares are issued at a price less than the face value of the share, it is known as shares issued at discount.
Detailed explanation-2: -The issue of shares at a discount means the issue of the shares at a price less than the face value of the share.
Detailed explanation-3: -And of course, shares sold at discount cost less than the face/nominal value. This means that when shares are issued at the face value means when the issue price is equal to the face value then it is called as the issue of shares at par.
Detailed explanation-4: -When the shares are issued more than nominal value, then the shares are issued at premium. The difference between face value and nominal value is called premium.
Detailed explanation-5: -79. Power to issue shares at a discount. (1) A company shall not issue shares at a discount except as provided in this section. (i) the issue of the shares at a discount is authorised by a resolution passed by the company in general meeting, and sanctioned by the 1 Company Law Board];