(Consider This) What Is the Difference Between fiNancial Investment and Economic

question 118

Multiple Choice

(Consider This) What is the difference between financial investment and economic investment?

• A) There is no difference between the two.
• B) Financial investment refers to the purchase of financial assets only; economic investment refers to the purchase of any new or used capital goods.
• C) Economic investment is adjusted for inflation; financial investment is not.
• D) Financial investment refers to the purchase of assets for financial gain; economic investment refers to the purchase of newly created capital goods.

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Definitions:

BPR

A strategy aimed at enhancing the efficiency and effectiveness of an organization's workflows, known as Business Process Reengineering.

BPI

Business Process Improvement, a strategic approach to identify, analyze, and improve existing business processes to meet new goals or standards of quality.

Cross-Functional Processes

No single functional area is responsible for a process’s execution.

BPC

Business Process Consulting, which involves helping organizations improve their efficiency and effectiveness through analyzing and redesigning business processes.