Multiple Choice
Which of the following reasons best explains why a company that experiences seasonal fluctuations in sales may purchase investments in debt or stock securities?
A) The company may have excess cash.
B) The company may generate a significant portion of its earnings from investment income.
C) The company may invest for the strategic reason of establishing a presence in a related industry.
D) The company may invest for speculative reasons to increase the value in pension funds.
Correct Answer:
Verified
Correct Answer:
Verified
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