When Common Stock Is Repurchased and Retired, the Underlying Motive

question 42

Multiple Choice

When common stock is repurchased and retired, the underlying motive is to

• A) reduce the retained earnings balance.
• B) distribute the excess cash to the owners.
• C) delay taxes.
• D) boost the stock's dividends.

---

Definitions:

Association

A connection or relationship between thoughts, ideas, or concepts, often used as a technique in memory recall.

Immoral Behavior

Actions or conduct that violate societal norms or ethical principles.

Criticism

The act of expressing disapproval based on perceived errors or faults.

Accusations

Claims that someone has done something wrong or illegal.