Why,in General,do Investment Opportunities Offer a Rate Greater Than That

question 34

Multiple Choice

Why,in general,do investment opportunities offer a rate greater than that offered by Government of Canada securities for the same horizon?

• A)Most investment opportunities offer far greater risk than those offered by Government of Canada.
• B)The return from Government of Canada securities generally attracts less tax than the returns from other investments.
• C)The opportunity cost of capital for a given horizon is generally based on Government of Canada securities with that same horizon.
• D)Government of Canada securities are generally considered to be the best alternative to most investments.
• E)Government of Canada securities are the least attractive investment available.

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Definitions:

Departmental Contributions

The specific financial or operational impact of individual departments within a company toward its overall success.

Uncontrollable Expenses

Uncontrollable expenses are costs that cannot be changed or influenced in the short term by the actions of managers or individuals within the organization.

Joint Cost

A cost that is incurred in producing multiple products where the costs cannot be easily separated for each product produced.

Product Cost

The total of direct materials, direct labor, and manufacturing overhead expenses incurred in producing a product.