Which Statement About "Share Buy-Back" Is Correct

question 7

Multiple Choice

Which statement about "share buy-back" is correct?

• A)If the repurchase price if below the issue price,an accounting "gain" results.
• B)If the repurchase price if below the issue price,the difference goes to "common shares."
• C)If the repurchase price if below the issue price,the difference goes to "contributed surplus."
• D)If the repurchase price if below the issue price,an accounting "loss" results.

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Definitions:

Customer Benefit

The advantage or value that a buyer gains from purchasing and using a product or service, which meets their needs or desires.

All-benefits Approach

A marketing strategy that emphasizes all the benefits of a product or service to appeal to a wide range of consumers.

Points-of-difference

Unique attributes or features that set a product, service, or brand apart from its competitors in the eyes of the target market.

CVP

Stands for Cost-Volume-Profit analysis, a financial tool used to determine how changes in costs and volume affect a company's operating income and net income.