Long-Term Investments Are Made by the Manager of an Investment

question 123

Multiple Choice

Long-term investments are made by the manager of an investment division for the purpose of:

• A)increasing profits.
• B)decreasing profits.
• C)increasing interest liability.
• D)decreasing debt liability.

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Definitions:

Voting Power

The total number of votes that can be cast in decision-making processes within a corporation, often directly linked to the amount of shares held.

Significant Influence

The power to participate in the financial and operating policy decisions of a business but is not control or joint control of those policies.

Voting Shares

Shares that give the holder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.

Ordinary Shares

Equity securities that entitle their holders to vote at shareholder meetings and to receive dividends, representing ownership in a corporation.