An Investor Refuses to Invest in Any Firm That Produces

question 78

Multiple Choice

An investor refuses to invest in any firm that produces alcohol or tobacco. This is an example of a ________ constraint.

• A) return requirement
• B) risk-tolerance
• C) liquidity
• D) social

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Definitions:

Cash

Represents money in coins, currency, or bank balances that is readily available for use.

Supplies Expense

The cost associated with consumable items used during the business operations and not directly tied to the production of goods or services.

Fees Earned

Income earned from providing services or performing work, recognized in the accounting period when the services are rendered.

Cash

Money in the form of bills or coins; the most liquid asset available.