The Acquisition of Treasury Stock by a Subsidiary from Noncontrolling

question 33

Multiple Choice

The acquisition of treasury stock by a subsidiary from noncontrolling shareholders at a price above book value

• A)decreases the parent's share of subsidiary book value and decreases the parent's ownership percentage.
• B)decreases the parent's share of subsidiary book value and increases the parent's ownership percentage.
• C)increases the parent's share of subsidiary book value and decreases the parent's ownership percentage.
• D)increases the parent's share of subsidiary book value and increases the parent's ownership percentage.

---

Definitions:

Oxytocin

A hormone that stimulates uterine contractions during birth and possibly orgasm. Known as the “love hormone,” oxytocin has a major role in pair bonding.

Prostaglandins

Natural substances made by the cells in the endometrium and other parts of the body. High levels in women can cause dysmenorrhea.

Uterine Contractions

The tightening and relaxing of the uterine muscles, typically occurring during childbirth, menstruation, or sometimes spontaneously.

Vernix

A greasy, white substance that covers and protects the skin of a fetus while in the womb and is still present at birth in most cases.