Based on your understanding of EQUITY as discussed in class the major advantage of companies...
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Accounting
Based on your understanding of EQUITY as discussed in class the major advantage of companies owning stocks, bonds and/or real-estate is to enhance their net value/net-worth and makes the company financial look stable when other aspects of the business might be struggling. Relating this example students, it is suggested that buying stocks serves as an advantages even if they are losing money in the short-run because, a. NONE of the ANSWERS are CORRECT b. banks will likely give loans and line-of-credit to those who have equity and/or a portfolio and usually they valuate the high-end potential of the investment c. in North America it is common practice that households buy stocks and bonds d. auto dealerships will only get approval for auto loans for their customers only if the customer have equity (via stock, bonds and real-estate) e. MORE than ONE ANSWER are CORRECT
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