An Investment That Must Be Readily Convertible to Known Amounts

question 55

Multiple Choice

An investment that must be readily convertible to known amounts of cash, that issubject to insignificant risk of changes in value, and normally qualifies only when it has a short maturity of three months or less from the date of acquisition is called an) :

• A) Financing activity.
• B) Cash equivalent.
• C) Operating activity.
• D) Trading security.
• E) Treasury bill, commercial paper, or equity security.

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Definitions:

Forward Vertical Integration

A business strategy where a company expands its operations by acquiring or establishing control over subsequent stages in its production or distribution process.

Hypercompetition

describes a business environment characterized by intense and rapid competitive moves, where advantages are quickly eroded due to constant disruptive changes.

Competitors

Entities that compete within the same market for the same customers or resources.

Environmental Threats

Potential harmful effects on the natural environment from human activities or natural processes.