Which of the following causes valuation issues relative to the issuance of capital shares?
A) ordinary shares issued for cash
B) the company's ordinary shares are publicly traded on a major exchange
C) the company issues ordinary shares to officers and withholds payment from paycheques
D) preference shares are issued for assets or services

Question

Quizplus · Accepted Answer

Issuing preference shares for assets or services can cause valuation issues because it may be difficult to determine the fair value of the assets or services received in exchange for the shares.

Which of the Following Causes Valuation Issues Relative to the Issuance