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A-LevelAccountingCompaniesOct/Nov 2025Paper 1 Q11 Mark

A company needs to raise finance to build a factory. Which action is suitable to protect the existing shareholders' interest?

Abonus issue of shares
Bfully subscribed rights issue of shares
Cissue of debentures
Dgeneral issue of ordinary shares

✓ Correct Answer

The correct answer is B. This question tests the candidate's understanding of companies within the Accountingsyllabus. The examiner's mark scheme requires...

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Oct/Nov 2025 examination, Paper 1 Variant 2. It tests the topic of Companies and is worth 1 mark.

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