When a Company Uses Excess Cash to Invest in Equity

question 63

True/False

When a company uses excess cash to invest in equity securities with less than 20% ownership,its total equity will increase.

---

Definitions:

Vitamin B12

An essential vitamin necessary for the normal functioning of the brain and nervous system, and for the formation of blood.

Pernicious Anemia

An autoimmune disorder that prevents the body from absorbing vitamin B12, leading to a severe type of anemia.

Vitamin A

An essential fat-soluble vitamin important for vision, immune function, and skin health, occurring naturally in foods like carrots, spinach, and liver.

Night Blindness

A condition characterized by difficulty seeing in low light or darkness, often due to vitamin A deficiency.