Business Firms Make Which of the Following Two Types of Investment

question 13

Multiple Choice

Business firms make which of the following two types of investment?

• A) foreign investment and domestic investment
• B) fixed investment and capital investment
• C) investment in stocks and investment in bonds
• D) investment in new capital goods and investment in used capital goods to replace "worn-out" capital goods
• E) fixed investment and inventory investment

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Definitions:

Efficient Markets

Markets in which all relevant information is fully and immediately reflected in asset prices, ensuring that securities are always fairly priced.

Profit Opportunities

Situations or conditions that allow businesses or individuals to earn a return on investment above normal expectations.

Eliminated

Removed or taken away, typically referring to the action of completely doing away with something.

Economic Losses

Financial losses incurred by businesses or individuals, often resulting from poor decisions or market conditions.