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:

Standard Communication Model

A theoretical framework describing how messages are transmitted from a sender to a receiver through a medium, incorporating feedback.

Sender

The party that initiates the transmission of a message or data in communication processes.

Receiver

An individual or entity that receives or is meant to receive something, commonly used in telecommunications, finance, and legal contexts.

Procrastination

The act of delaying or postponing tasks or decisions, often leading to stress or reduced productivity.