When a Company Acquires Treasury Stock, What Effect Does This

question 21

Multiple Choice

When a company acquires treasury stock, what effect does this transaction have on earnings per share and legal capital, respectively?

• A)increase, decrease
• B)increase, increase
• C)decrease, decrease
• D)increase, none

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Definitions:

Changing Phase

A period or stage in a process of transformation where significant alterations occur, leading from one state to a different one.

Lewin's Model

A theory of change management that describes the process as having three stages: unfreezing, changing, and refreezing.

Effective Ways of Behaving

Strategies or approaches that are proven to lead to successful outcomes in personal interactions or task execution.

Action

The act or process of doing something, typically to achieve an aim or to solve a problem.