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

Question

Quizplus · Accepted Answer

Sustaining the other company's stock price is not a typical reason for a company to purchase another company's stock. The other three options - earning a return on excess cash, gaining control of another company's operations, and developing or maintaining business relationships - are all common reasons for companies to purchase the stock of other companies.

Which of the Following Statements Is Not a Reason a Company