Which of the Following Is Incorrect

question 115

Multiple Choice

Which of the following is incorrect?

• A) Most firms would want to sell additional shares of common stock if they feel their stock is undervalued.
• B) Most firms would not want to repurchase shares of common stock if they feel their stock is overvalued.
• C) It is important for financial managers to understand market efficiency because it helps them understand how their stock prices will react to different types of decisions and news announcements.
• D) none of these choices are incorrect.

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Definitions:

Group-oriented

A trait or approach emphasizing teamwork, collaboration, and prioritizing the goals and success of the group over individual achievements.

Incentive Systems

Structured programs designed to encourage and reward specific behaviors among a group of individuals.

Profit Sharing

A company's practice of distributing a portion of its earnings to employees, usually based on the company's profitability, as an incentive and reward for their contributions.

Psychological Ownership

The feeling of possession and personal attachment that individuals feel for an object, place, or idea, even if they do not legally own it.