Financial security kept by non-financial corporations is____________________?
Correct answer: C. Short term treasury bills
- A. Deposit cheque
- B. Distribution cost
- C. Short term treasury bills
- D. Short term capital cost
Explanation
Non-financial corporations commonly hold short-term Treasury bills as liquid financial securities for temporary investment and cash management. The other options are costs or payment instruments, not securities normally held for this purpose.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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