Companies invest in short term investments for safekeeping purposes. Right O Wrong

Q: Why is a home a good inflation hedge

A: Inflation is a stage or condition in which the price is rising and the value of money is decreasing.…

Q: Investments a company chooses today to determine its future success? True or false? Explain how?

A: The given statement is true. Investment is the procedure to allocate monetary resources in the…

Q: What is meant by the term ‘financial distress’. If we assume that financial distress exists, explain…

A: Financial obligations are liabilities of an entity towards outsiders such as suppliers, vendors,…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: xplain what is meant by the term ‘financial distress’. If we assume that financial distress exists,…

A: Explain what is meant by the term ‘financial distress’ Answer: Meaning of  'Financial distress' -…

Q: Why is issuing a short-term note receivable an investing activity if it's short term and not long…

A: Short term note receivable are the notes that have maturity period of less than 12 months. Long term…

Q: Creditors look for اخترأحد الخيارات a. Net working capital for their safety b. High net working…

A: Creditors are the current liabilities of the business from whom the company purchased raw material…

Q: a. Is the investment vehicle a business? Justify your answer in no more than five (5) sentences. b.…

A: An investment vehicle is the created and financed with a debt instrument that are held by an…

Q: hat is the essential job of an investment banker?

A: Investment banker helps corporations or individuals to raise capital and also they provide financial…

Q: Which investments can provide the best protection of capital and offers low risks. * a. savings…

A: An investment is an asset that is brought with the intention of earning a return or profit from it.

Q: Which is one of the primary concerns of most businesspeople regarding the investments made in their…

A: Following are the primary concerns of most businesspeople regarding the investments made in their…

Q: Assume that an investor plan to invest in SONY company and after investigation the investor finds…

A: Fundamental analysis- is a method of determining the intrinsic value of the stock of a company. If…

Q: Answer true or false 1. An investors financial position will also affect his or her objectives. 2.…

A: Investment means engaging your funds to generate income for the future. There are various…

Q: True or False: As the owner, you're responsible for making investment decisions in a self-directed…

A: Self directed IRA is a self directed individual retirement account, where so many alternatives are…

Q: How would you argue for a significant increase in both dividends and repurchases instead of using…

A: Introduction: Stock repurchase allows the company's promoters as well as key stakeholders to reclaim…

Q: The ___ the expected return from a financial asset, the ____ the risk of not getting the money back…

A: Expected Return of Financial Asset:It is the expected profit or loss that is earned from the…

Q: Balance Sheet Insolvency occurs when Liabilities are greater than the Assets resulting in negative…

A: Insolvency Risk: Insolvency risk is a probability that an enterprise cannot satisfy its debt…

Q: Why do equity investors often use borrowed funds? Explain positive and negative financial leverage…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: e purchase of real estate is: a. a financing activity if the firm uses debt financing…

A: Step 1 A cash flow statement is a financial statement that shows how much cash and cash equivalents…

Q: Companies borrow because it is in their best interests financially.

A: The given statement is True..... Companies borrow because it is in their best interests…

Q: Why should you apply smart methods to investments

A: Investments are the funds or money that are invested by the investors for the objective of…

Q: Which of the following statements regarding capital investments is not true? a.They involve some of…

A: Capital Investment: A corporation will make a capital investment when it buys tangible assets with…

Q: Why is the reporting of investments and fair value required? Justify your response.

A: Investment refers to the deposits made in securities to earn a regular income and capital…

Q: What actions have you had to take in your own life to overcome liquidity problems?

A: Definition : Liquidity can be defined as the characteristics of an investment to be sold and…

Q: how do banks improve asset utilisation to increase Return on Equity and what are the risk…

A: Banks are the financial institutions which deposit money from customers at lower interest rates and…

Q: Which one is better in order to reach saving goals for retirement: Is it better to focus on stocks,…

A: When saving for retirement one has to focus on the end objective of building a required corpus that…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: Advantages and Disadvantages of Saving in Investments

A: Financial investments are made with the future desire of making just financial returns as far as…

Q: When are losses in noncurrent security investments recognized?

A: Noncurrent security investments are held for more than 1 year.

Q: Interest rates are important to financial institutions since an interest rate increase will decrease…

A: The interest rate is the amount charged by a lender to a borrower for the use of assets on top of…

Q: The financial market offers the investors a means to sell their financial asset thereby a.…

A: Financial Market is a marketplace where financial assets, securities, and other marketable…

Q: True or False: As the owner, you're responsible for making investment decisions in a self-directed…

A: Self-directed IRA is defined as the type of Roth IRA or traditional that allows for saving for the…

Q: Which of the following is NOT a financial asset?

A: Financial Asset: These are the liquid assets that derive their value from ownership rights. These…

Q: True (t) or False (f) _____ A reason some companies purchase investments is because they generate a…

A: The incentive to maximize income by an investment stake in another corporation is one of several…

Q: How is securitization supposed to help banks and S&Ls manage risks andincrease homeowners’…

A: Securitization is a method in which assets are converted in securities by using financial tools.…

Q: Which is the opportunity of equity-oriented real estate investment trust that has provided…

A: Equity-oriented real estate investment trust: The REIT is a real estate investment that has…

Q: The house money effect is used to explain the tendency of investors to take higher risks when…

A: House money effect : According to the house money effect, people would risk more with their…

Q: The role of management's intent increases the risk of material misstatement re: the Existence…

A: The answer for the True or false question and relevant explanation are presented hereunder : What is…

Q: Corporate finance is concerned with (i) what long-term investments the firm should choose, (in) how…

A:

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.