The reason for a company to invest in another company.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What would the price ?

If total assets decreased by $8,000 and stockholders' equity decreased by $3,000 during a period of time, then total liabilities must have changed by what amount and direction during that same period?

accounting question

Answer 2

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Answer 6

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Conclusion

Therefore, Option D is the correct answer.

Answer 7

Chapter E, Problem 1QC

To determine

To Explain: The reason for a company to invest in another company.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Option D is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds.

The company invests in another company for a short-term basis and long-term basis. They invest on short term basis to earn additional capital in the form of interest and dividends. A company invests in another company for long-term basis in order to gain influence over another company.

Option a, b, and c is all correct statements for a company to invest in another company. Hence, the option D all the above is the correct answer.

Answer 12

Conclusion

Therefore, Option D is the correct answer.

Answer 13

Ch. E - Prob. 1QC Ch. E - Rolling Hills Productions held investments in...Ch. E - Prob. 3QC Ch. E - Crandall's investment is in less than 2% of...Ch. E - Dumois Corporation purchased 1,500 shares of...Ch. E - Prob. 6QC Ch. E - Use the Dumois Corporation data in question 5....Ch. E - Prob. 8QC Ch. E - Prob. 9QC Ch. E - Prob. 10QC

The reason for a company to invest in another company.

To Explain: The reason for a company to invest in another company.

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter E Solutions