Which One of the Following Is Not an Example of Investment

question 20

Multiple Choice

Which one of the following is not an example of investment in the expenditure approach to measuring GDP? General Motors

• A)buys a new auto stamping machine.
• B)adds 500 new cars to inventories.
• C)buys shares in another company.
• D)builds another assembly plant.
• E)replaces some worn-out stamping machines.

---

Definitions:

Equity Financing

The process of raising capital through the sale of shares in an enterprise, thus offering investors ownership interests.

Initial Public Offering

An initial selling of shares to the public at large.

Stock Exchange

is a marketplace where securities, such as stocks and bonds, are bought and sold.

Angel Investors

Individuals who provide capital for startups or entrepreneurs, often in exchange for ownership equity or convertible debt.