Generally, Firms Resort to Repurchase of Stock During

question 16

Multiple Choice

Generally, firms resort to repurchase of stock during:
I. boom times at an increasing rate as firms accumulate excess cash
II. recession at an increasing rate because of the low stock price
III. boom as well as recession at a steady rate

• A) I only
• B) II only
• C) III only
• D) II and III only

---

Definitions:

Free Alongside

A shipping term indicating that the seller is responsible for delivering the goods next to a designated vessel, after which the buyer takes over the transportation costs.

Simple Delivery Contract

An agreement where the transfer of goods or services is completed upon the delivery of said goods or services, without requiring formal documentation for transfer of title.

Buyer and Seller

Refers to the two primary parties in a transaction where goods, services, or assets are exchanged between a purchaser and a vendor.

Agreement

A mutual understanding or arrangement between two or more parties, typically formalized into a contract, regarding their respective rights and responsibilities.