The most important difference between a bonus share issue and a rights issue, from the issuing company's point of view, is that they:

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A bonus share issue does not require the company to raise new funds, whereas a rights issue does. This means that a bonus share issue has no effect on cash flow, while a rights issue can have a significant impact on the company's cash position. Therefore, the most important difference between the two options is their effect on cash flow. Choice B is incorrect, because both types of issues require the same accounting practices. Choice C is not specific enough and is also incorrect, as both types of issues benefit shareholders in different ways.

The Most Important Difference Between a Bonus Share Issue and a Rights