Which of the Following Are Legitimate Financial Reasons for Holding

question 141

Multiple Choice

Which of the following are legitimate financial reasons for holding marketable securities?

• A) Expansion of inventory for the summer selling season.
• B) Payment of dividends.
• C) The firm just sold long-term securities.
• D) All of the above.
• E) Only answers a and c above.

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Definitions:

Much

A large amount or degree of something.

Excessive

Describes an amount or degree of something that is more than necessary, reasonable, or permissible.

Lack

The absence or deficiency of something desirable or necessary.

Apart

Separated by a distance or gap, or considered as separate or distinct entities.