Place the Following in the Correct Order of Priority for Selecting

question 39

Multiple Choice

Place the following in the correct order of priority for selecting short-term investments:

• A) expected return, liquidity, preservation of capital
• B) expected return, preservation of capital, liquidity
• C) liquidity, expected return, preservation of capital
• D) preservation of capital, liquidity, expected return

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Definitions:

Preferred Stock

A class of shares that offer their holders preferential rights to dividends and asset distribution over common stockholders, often without voting rights.

Treasury Shares

Shares of a company's own stock that it has reacquired and holds, which do not carry voting rights or pay dividends.

Authorized

Officially given a right or power to do something or the condition of having official permission.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.