Which of the Following Statements About Treasury Stock Is True

question 16

Multiple Choice

Which of the following statements about treasury stock is true?

• A)Few corporations have treasury stock.
• B)Purchasing treasury stock is done to eliminate hostile shareholder buyouts.
• C)Companies acquire treasury stock to increase the number of shares outstanding.
• D)Companies acquire treasury stock to decrease earnings per share.

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Definitions:

Groupthink

A phenomenon in which the desire for harmony or conformity in a group results in an incorrect or deviant decision-making outcome.

Cohesive Groups

Cohesive groups are characterized by strong bonds and a sense of unity among members, often leading to higher levels of group satisfaction and effectiveness.

Group Consensus

A general agreement reached by a group as a whole, where most members support the decision even if it's not their first choice.

Unanimity

Complete agreement among all members or participants, often used in decision-making processes to ensure consensus.