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:

Social Interference

The detrimental influence of the presence or actions of others on an individual's performance or behavior.

Groupthink

A psychological phenomenon in which the desire for harmony in a decision-making group results in an irrational or dysfunctional decision-making outcome.

Designated Leader

A person assigned or elected to lead or direct a group, team, or organization.

Major Decision

A significant choice or determination made after considering various factors, often having long-term impacts on an individual's life or an organization's direction.