Long-term investments are held for all of the listed reasons below except
A) to earn the interest or dividend income
B) for their long-term gain potential
C) to have influence over another business entity
D) to meet current cash needs

Question

Quizplus · Accepted Answer

Long-term investments are not held to meet current cash needs, as they are intended to be held for an extended period of time to reap potentially greater returns. The other options (earning interest or dividend income, long-term gain potential, and having influence over another business entity) are all common reasons for holding long-term investments.

Long-Term Investments Are Held for All of the Listed Reasons