Which of the Following Is Not a Reason for a Stock

question 82

Multiple Choice

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

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

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Definitions:

Commit a Crime

The act of performing a behavior that is forbidden by law and punishable by the government.

Tort

Tort is a legal term referring to a civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Void

Describes a contract or legal agreement that has no legal force from the outset and cannot be enforced.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the relevant parties to be enforceable.