Which of the Following Is a Reason That a Company

question 63

Multiple Choice

Which of the following is a reason that a company would repurchase its own shares of stock in the market?

• A) To reduce cash and the number of shares outstanding
• B) To increase outstanding equity shares
• C) To have shares available to offer a merger target
• D) Both A and B

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Definitions:

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, ensuring mutual aid and cooperation in human societies.

Free Samples

Items given without charge to potential customers to try the product before making a purchase.

Obligated

The state of being legally or morally bound to do something or to follow through on a commitment.

Conciliatory Acts

Behaviors intended to overcome the distrust or hostility of another party, aiming at peace and resolution of conflict.