Which of the Following Is Not a Reason for a Corporation

question 84

Multiple Choice

Which of the following is not a reason for a corporation to buy back its own stock?

• A) resale to employees
• B) bonus to employees
• C) support the market price of the stock
• D) increase the shares outstanding

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Definitions:

Standard Costs

Predetermined costs for the production of goods or services, used as benchmarks to measure actual performance and manage costs.

Actual Costs

Actual costs are the genuine expenditures incurred by a company, as opposed to estimated costs, during a given period for production, services, or other activities.

Reasonableness

A test or criterion to evaluate whether the assumptions or outputs of a financial model or decision are logical and align with real-world expectations.

Standard Costs

Predetermined costs for the production of goods or services, used as benchmarks against which actual costs are compared.