Holding marketable securities to take advantage of unusual cash discounts or price bargains on materials if it can pay quickly with cash.
A) Precautionary motives
B) Speculative motives
C) Safety motives
D) Tax motives

Question

Quizplus · Accepted Answer

Holding marketable securities to take advantage of unusual cash discounts or price bargains on materials is an example of a speculative motive. This means that the company is seeking to earn a profit by taking advantage of short-term opportunities in the market.

Holding Marketable Securities to Take Advantage of Unusual Cash Discounts