Asked by lyndsey holder on May 09, 2024
Verified
Corporations invest in other companies for all the following reasons except to
A) use excess cash until needed.
B) generate investment revenue.
C) meet strategic goals.
D) influence the market value.
Market Value
The current price at which an asset or service can be bought or sold in a marketplace.
Strategic Goals
Long-term, overarching objectives that an organization aims to achieve, guiding its mission and the allocation of its resources.
Investment Revenue
Income earned from various forms of investments like stocks, bonds, mutual funds, and other investment vehicles.
- Acknowledge the intentions and forms of corporate financings, noting the justifications and exemptions.
Verified Answer
SF
Surafal FelekeMay 12, 2024
Final Answer :
D
Explanation :
Corporations invest in other companies to use excess cash until needed, generate investment revenue, and meet strategic goals, but not specifically to influence the market value. Influencing the market value is not a direct reason for investment; it might be a consequence but not a primary objective.
Learning Objectives
- Acknowledge the intentions and forms of corporate financings, noting the justifications and exemptions.
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