When a Company Acquires Treasury Stock, What Effect Does This

question 19

Multiple Choice

When a company acquires treasury stock, what effect does this transaction have on earnings per share and legal capital, respectively?

• A) decrease, increase
• B) increase, decrease
• C) decrease, decrease
• D) increase, none

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Definitions:

Ethical Climates

Ethical climates are the shared perceptions of what is ethically right or wrong and what ethical behavior is expected within an organization.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Pragmatists

Individuals who approach problems and decisions based on practical considerations, often focusing on the consequences and practical effects rather than theoretical principles.

Golden Rule

A moral or ethical guideline suggesting that one should treat others as one would like others to treat oneself.