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For Each Item Listed Below Determine If It Is a Non-Strategic

Question 42

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For each item listed below determine if it is a non-strategic investment or a strategic investment.

Premises:
Treasury bill
Term deposits
Bonds
Equity investment purchased to trade
Long-term debt instrument held to earn interest
Short-term debt instrument held to earn interest
Preferred shares
Money market funds
Short-term debt instrument purchased to trade
60% of the common shares of the investee
Responses:
strategic investment
non-strategic investment

Correct Answer:

Treasury bill
Term deposits
Bonds
Equity investment purchased to trade
Long-term debt instrument held to earn interest
Short-term debt instrument held to earn interest
Preferred shares
Money market funds
Short-term debt instrument purchased to trade
60% of the common shares of the investee
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