Which of the Following Is NOT a Reason for a Company

question 8

Multiple Choice

Which of the following is NOT a reason for a company to purchase treasury shares?

• A) To reward valued employees
• B) To avoid a takeover by an outside company
• C) To buy the shares at a high price to increase total shareholders' equity
• D) To support the company's stock price
• E) To buy the shares when the price is low and sell when the price is higher

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Definitions:

Friends

Individuals with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.

Family

A social unit consisting of parents and their children, considered as a group, whether dwelling together or not; also refers to people who may or may not be related by blood or marriage but share close bonds.

Sports Team

A group of individuals who come together to participate in a competitive sport, sharing common goals, training, and strategies to win games or matches.

Social Cohesion

The extent to which members of a society or group stick together and remain united in pursuit of common goals and interests.