Which Statement About Long-Term Investments Is Not True

question 99

Multiple Choice

Which statement about long-term investments is not true?

• A) They will be held for more than one year.
• B) They are not currently used in the operation of the business.
• C) They include investments in stock of other companies and land held for future use.
• D) They can never include cash accounts.

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Definitions:

Adding Value

The process of enhancing a product or service to make it more attractive to customers, thereby increasing its worth.

Venture Capital Firm

A company that invests in startups and early-stage companies with high growth potential in exchange for equity.

Entrepreneur

An individual who organizes, operates, and assumes the risk for a venture, innovating and transforming ideas into economically viable entities.

Tax Exposure

The degree to which an individual or organization is subject to taxes or the risk of tax-related liabilities.