Which of the Following Is Not a Reason to Invest

question 81

Multiple Choice

Which of the following is not a reason to invest excess cash in temporary investments?

• A) earn interest revenue
• B) influence the operations of another company
• C) receive dividends
• D) realize gains from the increase in market value of the securities

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Definitions:

Small Acquisitions

Refers to the purchase of smaller companies, typically involving less financial risk and a simpler integration process compared to larger mergers and acquisitions.

Consolidated Net Income

The total earnings of a company and its subsidiaries after taxes and interest, adjusted for minority interests.

Non-Controlling Interest

A minority stake in a subsidiary that is not owned by the parent company, reflected as a separate component of equity in the consolidated financial statements.

Equity Method

An accounting technique used to record equity investments to reflect the investor's share of the investee's earnings or losses.