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:

Divisions

Subsections of a larger organization, each focusing on a specific area of operation or market.

Direct Foreign Aid

Financial or material assistance provided by one country to another, often in the form of grants or loans, to support the receiving country's development projects or economy.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and a low Human Development Index (HDI) relative to other countries.

Vicious Circle

A complex chain of events that reinforces itself through a feedback loop, leading to a negative or undesirable outcome.