Home  >  CS Executive  >  CS Executive Practice Test: Redemption of Preference Shares – Corporate and Management Accounting

For which one or more of the following reasons does company law attempt to protect the balance in the Securities Premium account by specifying the reasons for which alone it may be applied? (a) It is part of the capital actually contributed by the shareholders. (b) It should be protected from erosion as part of the creditor’s buffer. (c) It is not realized in cash. (d) It is immoral to allow a company to make a profit by trading on its own shares.Select the correct answer from the options given below:

🎲 Try a Random Question  |  Total Questions in Quiz: 24  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
CS Executive Practice Test: Redemption of Preference Shares – Corporate and Management Accounting — practice the complete quiz, review flashcards, or try a random question.
🧠 Flashcards (fast review) 🧪 Practice Quiz ⚔️ Challenge a Friend 🥊

For which one or more of the following reasons does company law attempt to protect the balance in the Securities Premium account by specifying the reasons for which alone it may be applied?<br /> (a) It is part of the capital actually contributed by the shareholders.<br /> (b) It should be protected from erosion as part of the creditor’s buffer.<br /> (c) It is not realized in cash.<br /> (d) It is immoral to allow a company to make a profit by trading on its own shares.<br />Select the correct answer from the options given below:






 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.