Investment processes:
A)Issue stock
B)Issue bonds
C)Purchase fixed assets
D)Invest excess funds

Question

Quizplus · Accepted Answer

Investing excess funds is the best choice for investment processes as it allows the company to earn a return on their idle cash, thus maximizing their profits. Issuing stocks or bonds may also generate funds, but it comes with an obligation to pay dividends or interest on bonds, resulting in a reduction in profits. Purchasing fixed assets may add value to the company, but it is a huge commitment that requires a large sum of funds, making it less feasible for small companies.

Investment Processes