Which of the Following Is Generally NOT TRUE of Stock

question 97

Multiple Choice

Which of the following is generally NOT TRUE of stock repurchase plans?

• A)Firms announce buying plans in advance.
• B)The plan sets a specific time frame for repurchase.
• C)The plan sets a specific dollar figure (or number shares)to be repurchased.
• D)Once a plan is announced,the vast majority of firms (in excess of 70%)complete the plans as announced.

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Definitions:

Total Revenue

The total income generated by a company from the sale of goods or services before any expenses are subtracted.

Economies of Scale

Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.

Decreasing Marginal Product

A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.

Total Cost Curve

A graphical representation that illustrates how the total cost of producing a good changes in relation to the quantity produced, considering both fixed and variable costs.