Imagine a Firm Has a Temporary Surplus of Cash Meant

question 67

Multiple Choice

Imagine a firm has a temporary surplus of cash meant to fund an expansion project in the next nine months. Which of the following statements is correct?

• A)The firm will probably want to invest this preferred stock.
• B)The firm will probably want to invest this surplus in U.S. Treasury bonds.
• C)The firm will probably want to invest this surplus in U.S. Treasury bills.
• D)The firm will probably want to invest this surplus in whichever security yields the highest return.

---

Definitions:

Legal Audit

A comprehensive review of an organization's adherence to legal obligations and regulatory requirements.

Environmental Audit

An evaluation process that systematically inspects an organization's environmental impact, compliance with environmental regulations, and practices to manage and improve environmental performance.

Political Strategy

A plan of action designed to achieve a specific political outcome, often used by politicians, governments, and organizations to influence public policy or opinion.

Bribing

The act of offering, giving, receiving, or soliciting something of value as a means of influence or persuasion, typically in an illegal or unethical manner.