Question
Which of the following are typical motivations for intercorporate investments. (Indicate all that apply.) a. A company purchases debt or equity securities of another company
Which of the following are typical motivations for intercorporate investments. (Indicate all that apply.)
a. | A company purchases debt or equity securities of another company as a temporary investment of excess cash or as part of a longer-term risk-adjusted portfolio, expecting to receive interest, dividends and capital gains. | |
b. | A company makes strategic investments to develop relationships with suppliers or customers or to gain access to new product or geographic markets. | |
c. | A company acquires a significant or controlling interest in a foreign company in order to circumvent the requirements of the U. S. Foreign Corrupt Practices Act. | |
d. | A company obtains a controlling interest in another company to facilitate activity along its supply chain |
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