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:

Clawback

A provision under which money already paid must be returned, often used in employment contracts for the return of bonuses or in investment agreements.

Whistleblower

An individual who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Net Loss

Refers to the situation where a company's expenses exceed its revenues within a specific accounting period, leading to a negative income.

Income Statement

A document summarizing the financial outcomes of a business over a given accounting period, including details on income, costs, and overall profit.