Which of the Following Is a Reason for a Firm

question 79

Multiple Choice

Which of the following is a reason for a firm for repurchasing its shares?

• A)to diminish the shareholder value by increasing the number of shares outstanding and thereby raising earnings per share
• B)to help encourage a friendly takeover by increasing the number of publicly traded shares
• C)to distribute cash to stockholders
• D)to make shares available for cash dividends

Understand the concepts of the Boston Consulting Group's matrix, including "cash cows," "stars," "question marks," and "dogs."

Interpret management jargon related to the Boston Consulting Group's matrix in practical business scenarios.

Analyze growth strategies such as market penetration, market development, product development, and diversification.

Evaluate the strategic marketing planning process and decision-making criteria for product continuation or discontinuation.

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Definitions:

Subordinated Bond

A type of bond that has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but based on the creditworthiness and reputation of the issuer.

Unsecured Debt

A type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower.

Maturity

The time at which payment to a bondholder is due from the issuer, according to the bond's terms.