When a Company Wishes to Purchase and Retire Its Own

question 72

Multiple Choice

When a company wishes to purchase and retire its own stock, the company must

• A) decrease the stock account balances by the original issue price.
• B) record a gain or loss depending on the difference between original selling price and repurchase cost.
• C) get the approval of the state to do so.
• D) issue a different class of stock to the former stockholders.

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Definitions:

Biased

Possessing or showing an unfair tendency to believe that some people, ideas, etc., are better than others.

Clitoral Orgasm

An orgasm achieved by the stimulation of the clitoris, a sensitive erogenous zone on the female body.

Sigmund Freud

An Austrian neurologist who is known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Kinsey

Refers to Alfred Kinsey, an American biologist known for his research into human sexuality in the mid-20th century.