Which of the Following Is Correct with Regard to Treasury

question 41

Multiple Choice

Which of the following is correct with regard to treasury shares?

• A) The 1980 amendments to the MBCA eliminated the concept of treasury shares.
• B) The acquisition of such shares by the corporation is a distribution to shareholders with an effect similar to that of a dividend.
• C) Under the Revised Act, treasury shares are unauthorized but issued.
• D) Treasury shares are issued and outstanding.

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Definitions:

Budget Constraint

A concept in economics that represents all the combinations of goods and services a consumer can afford given their income and the prices of goods and services.

Horizontal Axis

In a graph or chart, the x-axis that runs from left to right, commonly used to represent the independent variable.

Vertical Axis

A line or reference point on a graph or chart that typically represents the dependent variable or outcome in an analysis.

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from consuming one more unit of a good or service.