Which of the Following Is NOT a Situation That Might

question 35

Multiple Choice

Which of the following is NOT a situation that might lead a firm to hold marketable securities?

• A) The firm has replaced an obsolete machine with a new model; a large write-off must be taken on the old machine.
• B) The firm must meet a known financial commitment, such as financing an ongoing construction project.
• C) The firm must finance seasonal operations.
• D) The firm has just sold long-term securities and has not yet invested the proceeds in earning assets.

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Definitions:

Distribution Networks

The channels and pathways through which a product or service is delivered to customers.

Physical Flows

The movement of goods and materials through the supply chain from suppliers to customers.

Ownership Structures

The way in which the ownership of a company or property is organized, which can influence control, decision-making, and financial benefits.

Online Book Store

A digital platform that sells books and possibly related items through the internet, allowing customers to purchase and receive products electronically or via shipping.