The reason for a company to invest in another company.

Question

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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.

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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.

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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.

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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.

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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.