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.

---

Definitions:

Yellow Dog Contract

An employment agreement where the worker promises not to join a labor union during the term of employment, now illegal in many jurisdictions.

Union Workers

Employees who are members of a labor union, which represents their interests in negotiations with employers.

Employers

Individuals or organizations that hire and pay people to work for them, typically controlling the terms of employment.

Norris-LaGuardia Act

A 1932 United States federal law that limited the power of federal courts to issue injunctions against non-violent labor disputes and marked a shift towards protecting labor rights.