List and discuss two common reasons why companies invest in debt or equity securities
What will be an ideal response
1. The company may have short-term, excess cash that it doesn't need for normal operations. The company wants to make use of this excess cash, so it invests in debt or equity securities to generate investment income, which includes interest earned from debt investments, dividends earned from stock investments, and/or increases in the market value of the security.
2. The company may invest in debt or equity securities of other companies to pursue a certain business strategy. This may enhance a business relationship. An example is investing in the business of a vendor. This investment may strengthen the relationship and improve the company's business.
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The ___________ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction; internal processes; innovation and improvement activities; and financial measures
a. external audit b. balance sheet c. balanced scorecard d. RATER scale
The weight of a loaf of bread is normally distributed with a mean of 22 oz and a standard deviation of 0.5 oz. What is the probability that a loaf is between 21.75 and 22.25 oz?
What will be an ideal response?