Which of the Following Statements Would Not Explain Why a Company

question 102

Multiple Choice

Which of the following statements would not explain why a company may want to repurchase its stock?

• A)To demonstrate to investors that it believes its own stock is worth purchasing.
• B)To obtain shares to reissue to employees as part of an employee stock plan.
• C)To obtain shares that can be reissued as payment for purchase of another company.
• D)To increase the number of shares of outstanding stock.

---

Definitions:

Experimental Method

A research methodology that involves manipulating one variable to determine if changes in one variable cause changes in another variable.

Parsimonious Theory

A theory that explains a phenomenon in the simplest terms, using a minimum number of principles or assumptions.

Diverse Observations

Encompasses the act of noticing or perceiving a wide range of different aspects, situations, or behaviors, emphasizing the importance of a broad perspective.

Simple Principles

Basic, fundamental rules or concepts that guide actions, decisions, or procedures.