A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2025 · 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

B: fully subscribed rights issue of shares

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2025 Paper 1 Variant 2, question 1.

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