Which of the Following Statements Is Not a Reason a Company

question 42

Multiple Choice

Which of the following statements is not a reason a company may purchase another company's stock?

• A) earning a return on excess cash
• B) sustain the other company's stock price
• C) gaining control of another company's operations
• D) developing or maintaining business relationships

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Definitions:

Binomially Distributed

Describes the distribution of two possible outcomes in an experiment or process that is repeated multiple times.

Life Insurance

A contract between an insurer and an insured, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Sales Calls

Direct engagement with potential customers typically over the phone or in person to pitch a product or service.

Binomial Distribution Formula

A mathematical expression that calculates the probability of obtaining a fixed number of successes in a fixed number of independent trials, given the success probability for one trial.