Asked by Lissette Castaneda on Jun 12, 2024
Verified
One of the reasons a corporation may purchase investments is that it has excess cash.
Excess Cash
Surplus funds that exceed the normal operating needs of a business, often invested in short-term securities or used for acquisitions.
- Understand the rationale and motivations behind corporate investments.
Verified Answer
BW
Brittany WilliamsJun 16, 2024
Final Answer :
True
Explanation :
When a corporation has excess cash, it may choose to invest in various types of assets such as stocks, bonds, and real estate to generate additional income or to achieve long-term growth objectives.
Learning Objectives
- Understand the rationale and motivations behind corporate investments.
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