A reason some companies purchase investments is because they generate a significant portion of their earnings from investment income.

Question

Quizplus · Accepted Answer

Some companies, especially financial institutions, purchase investments such as stocks, bonds, and real estate to generate income. This income can come from dividends, interest, or rental income. In some cases, these investments may even generate more income than the company's primary business operations.

A Reason Some Companies Purchase Investments Is Because They Generate