Informal Investment Is Mostly Made by _____

question 6

Multiple Choice

Informal investment is mostly made by _____.

• A) family and friends
• B) angel investors
• C) venture capitalists
• D) banks and financial institutions

Understand the distinction between investments accounted for using the equity method and those accounted under FVTPL and FVTOCI.

Apply the cost method for investments without significant influence.

Identify the journal entries for buying, selling, and holding investments under different accounting standards (IFRS, ASPE).

Calculate and record gains or losses on the sale of equity investments.

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Definitions:

Theory Of Planned Behaviour

The Theory of Planned Behaviour is a psychological theory that links beliefs and behavior, suggesting that an individual’s behavior is driven by their intentions, attitudes, subjective norms, and perceived control over the behavior.

Theory Of Reasoned Action

A psychological model asserting that an individual's intention to engage in a behavior is a primary determinant of that action, influenced by attitudes towards the behavior and subjective norms.

Predict A Person's Behaviour

The process of forecasting an individual's actions based on observations, patterns, or knowledge about their past behavior or predispositions.

Fishbein

Refers to the Fishbein model, a theory of attitude formation and change, named after psychologist Martin Fishbein.