All of the following are reasons companies purchase temporary investments except:

Question

Quizplus · Accepted Answer

Companies purchase temporary investments primarily to earn a return on excess cash and to have investments that can be quickly converted into cash. Another reason is to minimize their cash balance, as holding too much cash can be costly. However, exercising control over another company is not a reason for purchasing temporary investments. That would fall under the category of strategic investments, which are intended to generate long-term profits or achieve long-term goals such as diversification or vertical integration.

All of the Following Are Reasons Companies Purchase Temporary Investments