A Company May Repurchase Their Own Shares for the Following

question 21

Multiple Choice

A company may repurchase their own shares for the following reasons except:

• A) the company has issued all its authorized shares and needs the repurchased shares for distributions to employees under stock purchase plans
• B) the company needs more financing
• C) management wants to avoid a takeover by an outside party
• D) the purchase may help support the share's current market price by decreasing the supply of shares available to the public

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Definitions:

Functionalism

Functionalism is a theoretical perspective in sociology and anthropology that interprets each part of society in terms of how it contributes to the stability of the whole society.

Conflict Theory

A sociological perspective that focuses on the tensions, struggles, and conflicts that arise from inequalities within society.

Canadian Pension

A retirement plan funded by the government of Canada, designed to provide financial support to its citizens during retirement.

Old Age Security

A government-provided pension plan in several countries designed to provide income support to the elderly.