Investment Refers to All of the Following Except

question 126

Multiple Choice

Investment refers to all of the following except:

• A) An increase in business inventories.
• B) The purchase of new equipment by a business.
• C) The construction of new factories by a company.
• D) The purchase of stock by an individual.

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Definitions:

Dividend Policy

A company's strategy for distributing profits back to its shareholders, which can include the timing, amount, and manner of dividend payments.

Dividend Income

Income received from owning shares in a company, typically paid out of the company's profits.

Capital Gains

The profit made from the sale of an asset, such as stocks or property, which exceeds its original purchase price.

Target Payout Ratio

The percentage of net income that a firm aims to pay out to its shareholders as dividends.