Which of the Following Could Be Considered an Example of Forced

question 56

Multiple Choice

Which of the following could be considered an example of forced reinvestment if the blockage of funds was expected to be temporary?

• A)Vertical reinvestment by an automobile manufacturer to buy parts suppliers and showrooms.
• B)A lumber cutting company subsequently builds a paper mill with blocked funds.
• C)Purchase of local money market instruments and short-term loans.
• D)all of the above

---

Definitions:

Instrument

A legal document that formally documents a legal or financial transaction or agreement.

Shelter Rule

A legal principle that protects buyers in good faith of personal property under the Uniform Commercial Code from subsequent claims of ownership.

Common Law

A legal system based on court decisions and customs, as opposed to written laws.

Comparative Negligence

A legal doctrine that reduces the amount of damages that a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injuries.