Asked by Seema AlHiraki on Jun 21, 2024

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Long-term investments are held for all of the listed reasons below except

A) to earn the interest or dividend income
B) for their long-term gain potential
C) to have influence over another business entity
D) to meet current cash needs

Long-Term Investments

Assets that a company intends to hold for more than a year, such as stocks, bonds, real estate, and investment in subsidiary companies, which are not easily converted into cash.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits.

Gain Potential

The possible financial profit that can be achieved from an investment, considering the risk and opportunity cost.

  • Acquire knowledge on the differentiation between transient and enduring investments along with their classifications.
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Verified Answer

GG
Geetha GanesanJun 21, 2024
Final Answer :
D
Explanation :
Long-term investments are not held to meet current cash needs. They are typically held for the other reasons listed, such as earning interest or dividend income, long-term gain potential, and to have influence over another business entity.