Define treasury shares, distinguishing between treasury shares ...

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Define treasury shares, distinguishing between treasury shares and outstanding shares. Is a company limited in treasury shares that it may own? Briefly explain.
 
  What will be an ideal response?

Question 2

You would like to buy a Harley Davidson and you can afford to make a down payment of 2,000 and pay monthly (end-of-month) payments of 1,320.
 
  If the term is 36 months and the loan rate is 9 (APR), then what is the maximum that you can pay for the motorcycle?
  A) 43,509.78
  B) 41,509.78
  C) 39,509.78
  D) 40,095.71
  E) 42,095.71

[InfiniteSteez]

Answer to Question 1

Answer: Treasury shares are shares that have been repurchased by the company and are being held for future disbursement, or that were created when the company first issued stock and kept some shares for future needs. Outstanding shares are shares that are sold and remain in the public domain. The most important distinction between treasury shares and outstanding shares is that treasury shares have no voting rights or claims to declared dividends. A company is limited in its treasury shares, as it cannot buy up all its outstanding shares.

Answer to Question 2

A