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) sustain 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 another company's stock price is not a reason why a company would 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 common reasons for companies to purchase another company's stock.

Which of the Following Statements Is Not a Reason a Company