Which One of the Following Is a Speculative Motive for Holding

question 103

Multiple Choice

Which one of the following is a speculative motive for holding cash?

• A)Buying extra inventory because a key supplier offered a special one-time discount
• B)Paying a $100 bonus to all employees at year-end
• C)Paying the annual insurance premium on the firm's assets
• D)Needing to purchase a new delivery truck because the old one was totally destroyed in an accident
• E)Contributing $1,000 to help fund medical care for an uninsured neighbor

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Definitions:

Severing

The act of legally separating or dividing property rights, often in the context of joint tenancies turning them into tenancies in common.

Adverse Possession

The process by which one can legally claim ownership of property by occupying it for a certain period, under certain conditions, without the permission of the owner.

Life Tenant

An individual who has the right to use or occupy property during their lifetime, but cannot sell or transfer the property.

Fee Simple

The most extensive interest in real estate available, granting the owner full possession and control, subject only to governmental restrictions.