Treasury Stock Can Be

question 105

Multiple Choice

Treasury stock can be

• A)used for stock purchase plans.
• B)used to increase cash when the treasury stock is purchased.
• C)used to distribute to employees for bonuses.
• D)both A and B
• E)both A and C

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Definitions:

Positive Profits

When a company's total revenue exceeds its total costs, resulting in a financial gain.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Profit-Maximizing

A strategy or point at which a business makes the highest profit possible, given its production costs and market demand.

Total Revenue

The entire amount of income generated by the sale of goods or services by a company before any expenses are deducted.