When a Company Wishes to Purchase and Retire Its Own

question 72

Multiple Choice

When a company wishes to purchase and retire its own stock,the company must

• A)decrease the Stock account balances by the original issue price.
• B)record a gain or loss depending on the difference between the original selling price and the repurchase cost.
• C)get the approval of the state to do so.
• D)issue a different class of stock to the former stockholders.

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Definitions:

Submaximal Contractions

Muscle contractions that are performed at less than maximum capacity, often used in exercise and physical therapy to build strength without overexertion.

Circulatory System

The system that facilitates the movement of blood and lymph throughout the body, involving the heart, blood vessels, and lymphatic system.

Nervous System

The complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.

Loss of Flexibility

A decrease in the range of motion of joints and muscles, which can affect mobility and increase the risk of injuries.