Which of the Following Is the Best Description of Investments

question 116

Multiple Choice

Which of the following is the best description of investments in trading securities?

• A) Investments in bonds that management intends to hold to maturity.
• B) Investments in stocks or bonds that are held primarily for the purpose of selling them in the near future.
• C) Investments in more than fifty percent of the voting stock of another company.
• D) Investments that provide the investor significant influence over the investee, but not control over the investee.

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Definitions:

Government Ban

An official prohibition or restriction imposed by a governmental authority on certain activities, products, or substances.

Breach of Contract

An act of failing to fulfill the duties, terms, or conditions stipulated in a contract, which may result in legal action or penalties against the offending party.

Liquidated Damages

refers to a predetermined sum agreed upon by the parties to a contract, to be paid as compensation in case of breach of contract.

Exemption Clause

A contract term that attempts to limit or exclude liability for certain events or damages.