Why do businesses invest in short-term investments?
A) They are trying to gain control over the activities of other companies.
B) They are investing excess cash to meet future business operation or investment needs.
C) They are lending money to companies that cannot obtain bank loans.
D) More than one of the above is correct.

Question

Quizplus · Accepted Answer

Businesses invest in short-term investments to earn returns on excess cash that is not immediately needed for current operations or investments. This helps them to ensure they have adequate funds available for future business needs.

Why Do Businesses Invest in Short-Term Investments