Which of the Following Is Not a Reason for a Stock

question 112

Multiple Choice

Which of the following is not a reason for a stock redemption?

• A)desire by remaining shareholders to retain control
• B)desire by shareholders to reduce the corporate tax liability
• C)Redemption of shares is a good corporate investment.
• D)No outside market exists for the stock.

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Definitions:

Human Capital

The expertise, know-how, and practical experiences that a person or collective maintains, regarded in relation to their financial or worth importance to a business or country.

Nonhuman Capital

Resources or assets that are not human, such as machinery, buildings, and land, used in the production of goods and services.

Knowledge

information, understanding, or skills obtained through experience or education; the theoretical or practical understanding of a subject.

Skills

The abilities and expertise a person has acquired through experience or education, enabling them to perform specific tasks effectively.