Which of the Following Is NOT a Motive for a Corporation

question 24

Multiple Choice

Which of the following is NOT a motive for a corporation to hold cash balances?

• A) transactions
• B) float
• C) precautionary
• D) speculative

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Definitions:

Stocks

Shares of ownership in a company, giving shareholders a stake in the company's assets and earnings.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional stock.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Corporate Decisions

Strategic choices made by a company's management or board of directors regarding the organization's operations, financial strategies, and overall direction.