"Round Trip" Transactions Primarily Are Utilized by Companies

question 8

Multiple Choice

"Round trip" transactions primarily are utilized by companies:

• A) To commit tax fraud
• B) To substantially change the overall composition of their assets
• C) To recognize accounting gains without meaningfully changing the nature of their operations
• D) To return capital that previously was contributed by shareholders, often through the use of treasury stock repurchases

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Definitions:

Informational Influence

The process through which individuals change their behavior or beliefs based on the information or evidence presented by others, especially in uncertain situations.

Autokinetic Effect

A visual illusion where a small, stationary point of light in a dark environment appears to move because of involuntary eye movements.

Informational Influence

A social influence that leads individuals to accept information from others as evidence about reality, often leading to internalization or private acceptance.

Low-Ball Technique

Influence technique based on commitment, in which one first gets a person to comply with a seemingly low-cost request and only later reveals hidden additional costs.