A Company Would Repurchase Its Own Stock for All of the Following

question 29

Multiple Choice

A company would repurchase its own stock for all of the following reasons except

• A)it needs the stock for employee bonuses.
• B)it wishes to make an investment in its own stock.
• C)it wishes to prevent unwanted takeover attempts.
• D)it wishes to improve the company's financial ratios.

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Definitions:

Indifference Curves

Graphical representations used in microeconomics to show different bundles of goods between which a consumer is indifferent, that is, which provide the same level of utility to the consumer.

Consumption Bundle

A mix of various goods and services selected by consumers based on their preferences and budget limitations.

Slope

The rate at which one variable changes in relation to another, representing the steepness of a line on a graph.

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, showing preferences.