A Company Would Repurchase Its Own Stock for All of the Following

question 29

Multiple Choice

A company would repurchase its own stock for all of the following reasons except

• A)it needs the stock for employee bonuses.
• B)it wishes to make an investment in its own stock.
• C)it wishes to prevent unwanted takeover attempts.
• D)it wishes to improve the company's financial ratios.

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Definitions:

Correlated

When two or more variables have a statistical relationship with each other, indicating that changes in one are associated with changes in the other.

Underlying Construct

Refers to the theoretical concept or psychological variable that is being measured or assessed, but is not directly observable.

Independent

Free from outside control; not depending on another's authority, or capable of thinking or acting for oneself.

Theory

A systematically organized set of concepts, explanations, and predictions about phenomena, serving as a framework for understanding or investigating those phenomena.