Explain the reasons for companies investing in securities.

Question

Want to see more full solutions like this?

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.

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

L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7.In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Assume that a pair of 8" Bean Boots are ordered on December 3, 2015. The order price is $109. The sales tax rate in the state in which the boots are order is 7%. L.L. Bean ships the boots on January 29, 2016. Assume same-day shipping for the sake of simplicity. On what day would L.L. Bean recognize the…

Financial accounting question

2 Question

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.

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 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.

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 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.

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 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.