Through Which of the Following Can a Firm Can Reduce

question 24

Multiple Choice

Through which of the following can a firm can reduce its number of outstanding shares?
I.Open market purchase
II.Rights offer
III.Tender offer
IV.Targeted repurchase

• A)IV only
• B)I and IV only
• C)II, III, and IV only
• D)I, III and IV only
• E)I, II, III, and IV

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Definitions:

Excess Capacity

A situation in which a company can produce more goods or services than the market demands, often leading to idle resources or reduced production rates.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Cycle Inventory

Inventory that is held to manage the normal fluctuation of production or supply and demand, rotating through cycles of replenishment.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring product availability.