In Which Two Ways Do Households Most Directly Provide Investment

question 39

Multiple Choice

In which two ways do households most directly provide investment funds for business?

• A) Through taxes
• B) By direct purchase of shares
• C) Through returns on bonds and shares
• D) By making deposits with financial institutions

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

Profit Margin

A financial ratio that measures the percentage of profit a company makes for each dollar of sales, indicating overall financial health and profitability.

Profit Margin

A financial ratio used to assess a company's financial health, showing the percentage of revenue that exceeds the cost of goods sold.

Liability

Financial obligations or debts owed by a company or individual to others, which must be settled over time.