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The Difference Between a Loan and an Investment Is Based

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Short Answer

The difference between a loan and an investment is based on the direction of the ____________________.


Definitions:

Net Income

The profit a company reports after all operational expenses and tax obligations are subtracted from its revenue.

Cash Flow

The total interchange of cash and assets comparable to cash, circulating in and out of a commercial venture.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment.

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