Solved

Businesses Invest in the Marketable Securities of Other Entities for the Short-Term

Question 32

Multiple Choice

Businesses invest in the marketable securities of other entities for the short-term because:


A) Using cash to purchase marketable securities improves the current ratio, loosening debt covenant restrictions.
B) It is an effective way to manage cash surpluses so that the investment may be turned into cash at short notice.
C) A diversified portfolio of marketable securities is less risky than having cash on deposit.
D) Using cash to purchase marketable securities improves the current ratio, loosening debt covenant restrictions and it is an effective way to manage cash surpluses so that the investment may be turned into cash at short notice.
E) All of the given answers.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents