Which of the Following Is NOT a Reason for a Company

question 80

Multiple Choice

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

• A)To reward valued employees
• B)To avoid a takeover by an outside company
• C)To buy the stock at a high price to increase total Stockholders' Equity
• D)To support the company's stock price

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Definitions:

Great Recession

A severe global economic downturn that began in 2007 and lasted until about 2009, marked by significant declines in the housing market, financial failures, and a surge in unemployment rates.

Fiscal Policy

A government's strategy for managing its budget through taxation and spending to influence the economy.

Tax Cuts

Reductions in the amount of taxes imposed by the government.

Government Spending

The total amount of money spent by government entities on goods, services, and public projects to fulfill their objectives and responsibilities.