Which of the Following Is True of Financial Assets

question 105

Multiple Choice

Which of the following is true of financial assets?

• A)Companies issue financial assets to earn revenue.
• B)Investors purchase financial assets to earn a return.
• C)The ownership of financial assets cannot be transferred.
• D)Investors purchase financial assets because they are virtually risk free.

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Definitions:

Hydrogenation

A chemical reaction where hydrogen is added to organic compounds, often requiring a catalyst.

Acetylene

A colorless and highly flammable gas with a triple bond between its two carbon atoms, used as a fuel and in chemical synthesis.

Initiation Step

The first step in a chain reaction mechanism in which reactive intermediates capable of continuing the reaction process are generated.

ΔS

The change in entropy of a system as a result of a process or reaction, indicating the degree of disorder or randomness.