Excess Cash Held by a Firm Should Be

question 42

Multiple Choice

Excess cash held by a firm should be:

• A)Reinvested by the firm in projects offering the highest rate of return.
• B)Reinvested by the firm in projects offering rates of return higher than the cost of capital.
• C)Reinvested by the firm in the financial markets.
• D)Distributed to shareholders in the form of dividends.

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to more interconnected and interdependent world economies.

Foreign Aid

Financial or material assistance given by one country to another for purposes of relief, development, or to influence the receiving nation's policies.

Poverty Levels

Indicators that measure the economic status of individuals or populations, often defined by income thresholds below which persons are considered to be living in poverty.

False Imprisonment

The unlawful restraint of a person's freedom to move, without consent or legal justification.