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Question 4 Constructive retirement is when A. P buys Ss common stoc.pdf

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Question 4 Constructive retirement is when A. P buys S\'s common stock O B. P buys S\'s bonds payable O C. P retires bonds payable. O D. P retires shares of its own stock. Solution If a company buys back its own share, which is treasury stock,and if the management of the company decides to retire them permanently, its called constructive retirement. So when P retires shares of its own stock, it results in constructive retirement . Option D is correct..

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Question 4 Constructive retirement is when A. P buys S's common stock O B. P buys S's bonds payable O C. P retires bonds payable. O D. P retires shares of its own stock. Solution If a company buys back its own share, which is treasury stock,and if the management of the company decides to retire them permanently, its called constructive retirement. So when P retires shares of its own stock, it results in constructive retirement . Option D is correct.

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  • 1. Question 4 Constructive retirement is when A. P buys S's common stock O B. P buys S's bonds payable O C. P retires bonds payable. O D. P retires shares of its own stock. Solution If a company buys back its own share, which is treasury stock,and if the management of the company decides to retire them permanently, its called constructive retirement. So when P retires shares of its own stock, it results in constructive retirement . Option D is correct.