1.1. C 1.1.2. F 1.1.3. D 1.1.4. A 1.1.5. B 1.1.6. E. 2.1.1. Define Authorised Shares and calculate unissued shares. 2.1.2. State one advantage of listing on the stock exchange. 2.1.3. Why should compa

$$\text{Issued Shares} = \text{Authorised Shares} \times \text{Percentage Issued}$$ $$\text{Issued Shares} = 2,000,000 \times 20\%$$ $$\text{Issued Shares} = 2,000,000 \times 0.20$$ $$\text{Issued Shares} = 400,000$$

$$\text{Unissued Shares} = \text{Authorised Shares} - \text{Issued Shares}$$ $$\text{Unissued Shares} = 2,000,000 - 400,000$$ $$\text{Unissued Shares} = \boxed{1,600,000}$$

The total number of unissued shares by the end of the financial year will be 1,600,000.

2.1.2. One advantage of listing the company to the Stock Exchange is that it provides easier access to capital for future expansion and growth through public offerings.

2.1.3. Companies should comply with IFRS (International Financial Reporting Standards) when preparing financial statements to ensure comparability and transparency. This allows investors and other stakeholders to easily compare the company's financial performance with other companies globally and make informed decisions.

2.1.4. The repurchase of shares benefits the company in the following ways:

• It can increase the earnings per share (EPS), making the company appear more profitable.
• It can return surplus cash to shareholders efficiently, especially if the company believes its shares are undervalued.

2.1.5. Retaining profits benefits a company by providing internal funding for future investments and expansion projects without incurring debt or issuing new shares. This strengthens the company's financial position and can lead to long-term growth.

2.1.6. Limited liability means that a shareholder's personal assets are protected from the company's debts and obligations. If the company faces financial difficulties or goes bankrupt, the shareholder's maximum loss is limited to the amount they invested in purchasing the company's shares, and their personal property cannot be seized to pay off company debts.