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:

Tax Burden

The measure of taxes that an individual or a business must pay in relation to their income or profit.

Buyer

The individual or entity that purchases goods or services from a seller for money or other consideration.

Seller

An individual or entity that offers goods or services to consumers in exchange for money or other forms of compensation.

Government Revenue

The money received by a government from taxes, fees, fines, intergovernmental grants, and other sources to fund public services and obligations.