Which of the Following Is Not a Reason for a Stock

question 112

Multiple Choice

Which of the following is not a reason for a stock redemption?

• A)desire by remaining shareholders to retain control
• B)desire by shareholders to reduce the corporate tax liability
• C)Redemption of shares is a good corporate investment.
• D)No outside market exists for the stock.

---

Definitions:

Value Pricing

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price.

Free On Board

A shipping term indicating that the seller bears the shipping costs and risk of loss until the goods reach the buyer’s specified location.

Origin Pricing

Pricing strategy based on the geographical location of a product's origin, considering the costs of transportation and tariffs.

Transportation Costs

Expenses associated with moving goods or services from one location to another, including fuel, labor, and maintenance.