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:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.