Which of the Following Is the Best Example of an Investment

question 60

Multiple Choice

Which of the following is the best example of an investment as defined by economists?  

• A) a household's purchase of 100 shares of Apple computer stock 
• B) a firm's purchase of 100 shares of General Electric stock 
• C) a firm's purchase of a bond issued by General Mills 
• D) a firm purchases computers for its office staff

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Definitions:

Partnership Form

A type of business structure where two or more individuals share ownership, profits, losses, and responsibilities for managing the business.

Oral Agreement

A contract that has been agreed upon by verbal communication between parties, rather than in writing, though its legal enforceability can vary by jurisdiction and the nature of the agreement.

Revised Uniform Partnership Act

Legislation aimed at governing the operation of partnerships within the jurisdiction it is adopted, updating and replacing the original Uniform Partnership Act.

Uniform Partnership Act

A set of laws adopted by some states to regulate the operations of partnerships and ensure uniformity in their treatment.