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

---

Definitions:

Empowerment

The process of becoming stronger or more confident, especially in controlling one’s life and claiming one’s rights.

Interpersonal Power

The ability to influence or control the outcomes, decisions, or behavior of others within personal relationships, often stemming from one's status, knowledge, or emotional connection.

Power Currencies

The various types of leverage or assets (such as resources, relationships, or knowledge) that individuals or groups possess, which can influence power dynamics in social interactions.

Competitive Power

Competitive Power refers to the ability or capacity of an entity, such as a person or organization, to outperform rivals in a particular domain or competition.