Which of the Following Is Not a Reason That Companies

question 18

Multiple Choice

Which of the following is not a reason that companies may undertake a share buy-back?

• A) To manage the capital structure.
• B) As a defence against a hostile takeover.
• C) To efficiently manage surplus funds.
• D) To increase the value per share of the remaining shares.

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Definitions:

Interest Earned

The income received from investing in interest-bearing financial instruments, such as bonds, loans, or savings accounts.

Balance Sheet

An accounting record that presents the total value of a corporation's assets, its obligations, and the equity belonging to shareholders, reflecting the company’s financial state at a specific time.

Prepaid Expense

An expense that has been paid in advance and is considered an asset until it is actually used or consumed.

Rental Payments

Rental payments are periodic payments made by a lessee to a lessor for the use of a property, equipment, or vehicle.