Which of the Following Statements Would Explain Why a Company

question 81

Multiple Choice

Which of the following statements would explain why a company may want to repurchase its shares?

• A)To demonstrate to investors that it believes its own shares are worth purchasing.
• B)To obtain shares to reissue to employees as part of an employee stock option plan.
• C)To obtain shares that can be reissued as payment for purchase of another company.
• D)All of the answers are acceptable.

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Definitions:

Percentage

A mathematical concept that represents a portion of 100, used in describing proportions and rates in various contexts.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Sales

The exchange of a commodity for money; the action of selling something.

Classified Ads

Short advertisements placed in a newspaper, magazine, or online, usually categorized by topic, such as jobs, real estate, and services.