7. Receivables and Investments

In the context of investments, what is diversification?

Which best describes the primary purpose of making an investment in securities?

What is the overall purpose of a firm's investment strategy in securities?

Who assumes the investment risk with a fixed annuity contract?

What is the primary purpose of issuing a fixed or adjustable rate note in the context of investments in securities?

In a fixed annuity, who bears all of the investment risk?

You want to buy a new sports coupe for \$79,500. If you decide to invest in marketable securities to save for this purchase, which of the following best describes a marketable security?

Which method of calculating return on investment (ROI) makes it easiest to compare different investments?

The Economic Order Quantity (EOQ) model is most relevant for which one of the following?

Which settlement option pays a stated amount to an annuitant for a specified period or for life?

Which of the following best helps entrepreneurs assess the viability of a company for generating profits before making an investment?

What is the main advantage of using mutual funds for individual investors?

The internal rate of return (IRR) method assumes that a project's cash flows are reinvested at the:

Imagine you own a startup company. How might you benefit from participating in the financial market?

Which of the following is considered a good cash management practice when making inventory purchases?