When a Company Has Long-Term Investments,it Means It ______

question 38

Multiple Choice

When a company has long-term investments,it means it ______.

• A)has cash,stocks,bonds,and/or real estate that has been on its books longer than one year
• B)should be selling them soon so it can become short-term profit
• C)has more cash than it needs and it is wasting it on long-term investments
• D)is going for a bank loan

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

The change in quantity demanded resulting from a change in the price of a good, making other goods more or less expensive relative.

Saving

The process of setting aside a portion of current income for future use or investment.

Capital Income

Income generated through investments, such as dividends from stocks, interest from bonds, or rent from real estate, as opposed to earned income from labor.