A Company Would Not Acquire Treasury Stock

question 104

Multiple Choice

A company would not acquire treasury stock

• A) in order to reissue shares to officers.
• B) as an asset investment.
• C) in order to increase trading of the company's stock.
• D) to have additional shares available to use in acquisitions of other companies.

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Definitions:

Benzene

A chemical compound with the formula C6H6, known as an aromatic hydrocarbon and used as a starting material in the production of numerous chemicals.

Alkane Solvents

Solvents composed of alkanes, which are hydrocarbons containing only single bonds between carbon atoms, making them nonpolar and good for dissolving similar substances.

Soluble

The ability of a substance to be dissolved in a solvent, forming a homogeneous mixture at the molecular or ionic level.

Ethers

A class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups, widely used as solvents and in the production of pharmaceuticals and chemicals.