A Reason Why a Company Might Wish to Buy Back

question 23

Multiple Choice

A reason why a company might wish to buy back its own shares is:

• A) to decrease its debt to equity ratio
• B) to protect its creditors
• C) to use funds to benefit shareholders where there are insufficient profitable investment opportunities
• D) all of the above

---

Definitions:

Cognitive Processes

The mental activities involved in acquiring, processing, and storing knowledge, including perception, memory, and thinking.

Consumer Behavior

The study of how individuals or groups select, buy, use, and dispose goods, services, ideas, or experiences to satisfy their needs and wants.

Dynamic

Characterized by constant change, activity, or progress.

External Stimuli

Any information or event from the external environment that can elicit a sensory, emotional, or intellectual response.