Asked by Seema AlHiraki on Jun 21, 2024
Verified
Long-term investments are held for all of the listed reasons below except
A) to earn the interest or dividend income
B) for their long-term gain potential
C) to have influence over another business entity
D) to meet current cash needs
Long-Term Investments
Assets that a company intends to hold for more than a year, such as stocks, bonds, real estate, and investment in subsidiary companies, which are not easily converted into cash.
Dividend Income
Income received from owning shares in a company, typically paid out from the company's profits.
Gain Potential
The possible financial profit that can be achieved from an investment, considering the risk and opportunity cost.
- Acquire knowledge on the differentiation between transient and enduring investments along with their classifications.
Verified Answer
Learning Objectives
- Acquire knowledge on the differentiation between transient and enduring investments along with their classifications.
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