Asked by

Melanie Allen
on Nov 13, 2024

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Which of the following statements is not a reason a company may purchase another company's stock?

A) earning a return on excess cash
B) sustaining the other company's stock price
C) gaining control of another company's operations
D) developing or maintaining business relationships

Sustaining Stock Price

Efforts or strategies employed by a corporation to maintain or support the current market price of its shares.

Excess Cash

The amount of cash available exceeding what is necessary for day-to-day operations, often allocated for investment or returned to shareholders.

Business Relationships

The connections and interactions between a company and its customers, suppliers, partners, and other entities essential for its operation.

  • Establish the proper accounting techniques for diverse levels of stock ownership in another firm.
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SM
Salina MennaNov 14, 2024
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