Which of the Following Is Not a Business Transaction

question 7

Multiple Choice

Which of the following is not a business transaction?

• A) Incurring interest on a business loan.
• B) A business owner purchasing a new home.
• C) Purchasing inventory.
• D) Receiving cash payment for services provided.

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, providing a share in the company's profits and losses.

Geometric Average Returns

A method of calculating the average rate of return of a set of values that accounts for the effects of compounding, useful for assessing the performance of investments over time.

Returns

The profits or losses generated by an investment over a specific period, often expressed as a percentage of the initial investment cost.

Years

Units of time representing a period of twelve months or 365 days, used as a measure of time passing.