Explain the reasons for companies investing in securities.

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Answer 1

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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Answer 2

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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

Answer 3

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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

Answer 4

Question

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

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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 H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 6

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.

Answer 7

Chapter H, Problem 1Q

To determine

Explain the reasons for companies investing in securities.

Answer 8

Expert Solution & 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 debt securities such as bonds or equity securities such as shares.

The reasons for investing in securities are explained below:

To earn returns by investing the excess cash generated by the company.
To generate income from investments in securities
To dominate the competitors or suppliers by gaining controlling interests over them through investments.
To enter into a new industry through investments in other companies’ securities.