Which of the Following Is an Example of an Investment

question 14

Multiple Choice

Which of the following is an example of an investment in human capital?

• A) a law student who works as a waiter in the summer
• B) on-the-job training received by an apprentice welder
• C) payments into a retirement pension plan by a skilled laborer
• D) all of the above are correct.

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Definitions:

Pre-Specified Number

A fixed number that has been determined beforehand, often used in contracts, agreements, or computational formulas.

Investment Acceptance

The approval process for allocating resources or capital into investments, projects, or financial assets.

Payback Period

is the duration needed to recoup the cost of an investment, calculating the time it takes for returns to cover costs.

Average Accounting Return

A financial ratio that compares the average net income to the average investment made in a company.