When a Company Invests in a Bond Which Has a Maturity

question 98

Multiple Choice

When a company invests in a bond which has a maturity greater than one year and pays cash:

• A)equity remains unchanged.
• B)current asset increases.
• C)liabilities increase.
• D)total assets increases.

Understand the concept of externalities and how they affect social costs and benefits.

Calculate the social cost of producing goods in the presence of external costs.

Evaluate the effects of externalities on the efficiency of the market outcomes.

Identify and justify the use of taxes or subsidies to achieve social optimum.

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Definitions:

Logistics Management

The coordination and optimization of the movement of goods and materials from origin to destination.

Cost-Effective

An economic term referring to the ability of a process or product to deliver greater benefits at lower costs, essentially offering good value for the amount spent.

Marketing Strategy

A process by which a business or organization devises a plan to reach and persuade potential customers to buy its products or services, often including the development of the product, pricing, distribution, and promotional tactics.

Supply Chain

The connected network of individuals, organizations, resources, activities, and technologies involved in the manufacture and sale of a product or service.