Which of the Following Is NOT a Motivation for a Firm

question 26

Multiple Choice

Which of the following is NOT a motivation for a firm to undertake a share repurchase?

• A)Offsetting the exercise of executive stock options
• B)Repurchase of shares from dissident shareholders
• C)Pay free cash flows to shareholders without generating an expectation of continued dividends
• D)To indicate that the management feels the stock is overvalued

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Definitions:

Individualistic Culture

A societal framework that emphasizes personal independence and the self over collective goals and community well-being.

Equity Principles

Guidelines that ensure fairness and justice in the treatment and representation of individuals and groups within organizations and societies.

Theories of Organizational Behaviour

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, aiming to apply such knowledge towards improving an organization's effectiveness.

Cultural Missteps

Actions or behaviors that are inappropriate or offensive within a cultural context, often due to a lack of understanding or awareness of that culture.