Which of the Following Is Not a Reason a Company

question 117

Multiple Choice

Which of the following is not a reason a company would repurchase stock?

• A)To reduce the number of outstanding shares.
• B)To give the impression that the stock is worth buying.
• C)To have shares of stock to issue when stock options are exercised.
• D)To increase the total stockholders' equity balance and improve the ROE.

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Definitions:

Transactional Relationships

Business interactions focused on the exchange of goods, services, or funds with little emphasis on building long-term partnerships.

EDI System

Electronic Data Interchange system, allowing the structured transmission of data between organizations electronically.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent, involved in serving the same consumer or customer.

Power

A situation that occurs in a marketing channel in which one member has the means or ability to have control over the actions of another member in a channel at a different level of distribution, such as if a retailer has power or control over a supplier.