Which of the Following Is a Common Reason for Companies

question 3

Multiple Choice

Which of the following is a common reason for companies to buy back shares?

• A)To make a profit on the retirement of shares
• B)To reward the shareholders
• C)To return surplus cash to shareholders when few profitable investment opportunities exist
• D)To increase shareholders' equity

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Definitions:

ATP

ATP, or adenosine triphosphate, is a compound that transports energy throughout cells to fuel metabolic activities.

Oxygen

A chemical element with the symbol O and atomic number 8, essential for the respiratory processes of most living organisms.

Diplomonads

A group of flagellate protozoa, often found in anaerobic environments, characterized by having two nuclei.

Petroleum Deposits

Accumulations of hydrocarbons, formed from ancient organic matter, found underground and extracted for fuel and other products.