Identify the reason(s)why investments are made in other corporations.
A) To participate in new markets and technologies.
B) To gain insider information on the corporation.
C) To build a favourable business relationship with a major customer or supplier.
D) To participate in new markets and technologies and to build a favourable business relationship with a major customer or supplier.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

Investing in other corporations can provide opportunities to participate in new markets and technologies, as well as build a favourable business relationship with a major customer or supplier. However, gaining insider information on the corporation is unethical and illegal, and should not be pursued as a reason for investing.

Identify the Reason(s)why Investments Are Made in Other Corporations