Which of the Following Refers to the Ability of an Asset

question 77

Multiple Choice

Which of the following refers to the ability of an asset to generate returns, which are then reinvested in order to generate their own returns?

• A) buy and hold
• B) compounding
• C) simple returns
• D) extrapolation

---

Definitions:

Entrepreneurs

Individuals who create, organize, and operate businesses, taking on financial risks in the hope of profit.

Start-ups

New and emerging companies, typically in the technology sector, that aim to address market needs through innovative products or services.

Top Executives

Individuals occupying the highest level of management in an organization, responsible for making overarching decisions and setting strategic goals.

Entrepreneurs

People who start their own companies, taking on the majority of risks while also reaping the majority of benefits.