Which of the Following Statements Would NOT Explain Why a Company

question 25

Multiple Choice

Which of the following statements would NOT explain why a company may want to repurchase its stock?

• A) To demonstrate to investors that it believes its own stock is worth purchasing.
• B) To obtain shares to reissue to employees as part of an employee stock plan.
• C) To obtain shares that can be reissued as payment for purchase of another company.
• D) To increase the number of shares of outstanding stock.

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Definitions:

Sanguine

describes a personality type that is cheerful, optimistic, active, and social, based on the ancient theory of humors associated with blood.

Melancholic

Pertaining to a state of deep sadness or depression, often characterized by persistent feelings of despair and low self-esteem.

Psychosexual Stages

A Freudian theory that proposes five stages (oral, anal, phallic, latency, genital) of psychological and sexual development from infancy to adulthood, with each stage associated with a different erogenous zone.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings.