Question 7 1 pts 7. Investors who are conservatively investing to reach short-te
ID: 2801997 • Letter: Q
Question
Question 7
1 pts
7. Investors who are conservatively investing to reach short-term financial goals,
such as saving for a down payment on a home, are most likely concerned with
which investment objective?
1. Current income.
2. Capital appreciation.
3. Preservation of capital.
4. Growth and income.
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Question 8
1 pts
8. An ownership interest in a corporation that gives its owners the right to vote
on important corporate matters, always accompanies which one of the
following types of investments?
1. A life insurance policy.
2. A bond.
3. Preferred stock.
4. Common stock.
1. Current income.
2. Capital appreciation.
3. Preservation of capital.
4. Growth and income.
Explanation / Answer
Q8) A life insurance policy from a company restricts the involvement of its owners only till the premiums collection and dividends being paid. It doesnt carry any voting interest
Bonds and preferrd stocks are preferential stocks/borrowings from the company as these face top priority in receiving interest, dividend payments. However, they donot hold any voting rights to the shareholders/bondholders
But the owners of common stock also called shareholders hold significant ownership in the company and are given voting right on important aspects of the company.
So, the answer is Option 4
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