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WAEC Financial Accounting 2019 Question 24

Question 24

Company Accounts

Companies issue shares to the public in order to

  1. A.reduce the number of directors.
  2. B.reduce the number of shareholders.
  3. C.raise capital.
  4. D.generate profit.
Show the answer and explanation

Answer: C (raise capital.)

Explanation

Issuing shares raises capital for the company.