Which Statement Below Regarding a Share Repurchase Is True

question 70

Multiple Choice

Which statement below regarding a share repurchase is true?

• A) A share repurchase grows a company's assets and equity.
• B) The company repurchasing shares is not entitled to vote.
• C) Repurchasing shares shrinks a company's assets and equity.
• D) Repurchasing shares increases retained earnings.

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Definitions:

Breach of Warranty

The violation of a promise, assurance, or guarantee made about the quality, condition, or performance of a product or service.

Breach of Condition

The failure to fulfill a condition agreed upon in a contract, potentially rendering the contract void.

Easter Break

A holiday period marking the Christian celebration of Easter, often observed in schools and various sectors as a break from routine activities.

Significant Term

A significant term in a contract is a provision that is essential to the agreement, often impacting the performance, duties, and rights of the parties involved.