Reasons That a Company Would Purchase Treasury Stock Include All

question 144

Multiple Choice

Reasons that a company would purchase treasury stock include all of the following EXCEPT:

• A)management wants to avoid a takeover by an outside party.
• B)it needs the stock for distribution to employees under stock purchase plans.
• C)it wants to increase net assets by buying its stock low and reselling it at a higher price.
• D)management wants to decrease earnings per share of common stock.

---

Definitions:

Motivation Process

The psychological phenomena that initiate, guide, and maintain goal-oriented behaviors, involving needs, desires, and ambitions in individuals.

Energized

The state of being filled with energy and vitality; physically and mentally revitalized.

Maslow's Hierarchy

A theory in psychology proposing that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Love/Belonging

A fundamental human need, identified by Abraham Maslow, encompassing emotional relationships with significant others, friends, and family.