Which three of the following properties best describe the investment characteristics of ultimate borrowers (businesses)?

Question

Quizplus · Accepted Answer

Businesses typically require large amounts of capital for investment projects. They also often involve high risk, as the success of their investments is not guaranteed. Additionally, the assets that businesses invest in may not be easily converted to cash, leading to low liquidity. However, there is no evidence to suggest that search costs are necessarily higher for businesses compared to other types of borrowers.

Which Three of the Following Properties Best Describe the Investment