Compare and contrast why companies invest cash in short-term temporary investments vs. long-term investments
When companies temporarily have excess cash not needed for current operations, they often invest it in debt or equity securities. These investments can be short term or long term in nature.
The primary reason companies invest short-term is to earn interest or dividends and to realize gains from the increase in the market price of the securities. When companies make temporary investments, they are listed as current assets on the balance sheet.
Long-term investments may be made for the same reasons. However, many long-term investments involve the purchase of stock of another company. This type of purchase may be made for strategic reasons such as an attempt to reduce operating costs, replace management, expand, or integrate.
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The _____ is a place where banks can request loans from the Federal Reserve.
A. money market B. domestic trading desk C. Treasury D. discount window
The interest rate that determines the amount of cash interest the borrower pays and the investor receives each year is called the ________.
A) amortization rate B) market interest rate C) stated interest rate D) discounting rate
Discuss the advantages of using the services of an advertising agency
What will be an ideal response?
The effective management of human resources in a firm to gain a competitive advantage in the marketplace requires
a. timely and accurate information on current employees b. a vice president representing the HR function c. the use of decision support systems (DSS) d. outsourcing of transaction HR activities