What Are Short-Term Investments That Are Easily Converted Back to Cash

question 36

Multiple Choice

What are short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by chequing accounts?

• A) corporate securities
• B) marketable securities
• C) management vehicles
• D) corporate equities

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Definitions:

Total Profits

The overall financial gain made by a business after subtracting total costs from total revenues, indicating the business's financial health over a period.

Cost Function

A mathematical relation that defines the total cost of production as a function of the quantity of output produced.

Profit-Maximizing

The procedure companies undertake to find the best combination of price and production volume for peak profit.

Output

The quantity of goods or services produced by a company, industry, or economic system.