Firms That Continually Invest in Nontrivial Amounts of Marketable Securities

question 14

Multiple Choice

Firms that continually invest in nontrivial amounts of marketable securities may be guilty of:

• A) excessive short-term borrowing.
• B) not matching their sources and uses of cash.
• C) incurring excessive shortage costs.
• D)not maximizing shareholder returns.

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Definitions:

Erik Erikson

A developmental psychologist known for his theory on the psychological development of humans, characterized by eight stages over the lifespan.

Middle Childhood

A developmental stage that encompasses the period from approximately 6 to 12 years of age, characterized by significant growth in cognitive, social, and physical abilities.

Industry

In a developmental context, it refers to a phase where individuals gain competence and productivity; in economics, it denotes sectors of the economy producing goods or services.

Inferiority

A feeling of being lower in status or quality compared to others, often leading to decreased self-esteem.