Long-Term Investments ________

question 106

Multiple Choice

Long-term investments ________.

• A) include all trading debt investments and held-to-maturity debt investments
• B) are investments in debt and equity securities that are readily marketable and that the investor intends to sell in one year or less
• C) include debt and equity securities that the investor expects to hold longer than one year or debt or equity securities that are not readily marketable
• D) are investments in debt securities or equity securities in which the investor holds less than 20 percent of the voting stock and that the investor plans to sell in the very near future

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Definitions:

Management

The process or practice of directing and controlling a group of people or an organization to achieve a goal through the application of resources, planning, and strategy.

Limited Partnerships

A business structure where some partners have limited liabilities to the business's debts and obligations, typically proportional to their investment.

Limited Liability

A legal structure that limits the financial responsibility of business owners to the amount they have invested in the company, protecting personal assets from business debts.

Management Participation

The involvement or active engagement of management in the day-to-day operations and decision-making processes of a business.