Which of the Following Is NOT Classified as an Investing

question 60

Multiple Choice

Which of the following is NOT classified as an investing activity?

• A) Purchase of shares in BHP
• B) Purchase of motor vehicle
• C) Making a loan to another entity
• D) Obtaining a loan from another entity

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Definitions:

Law of Diminishing Returns

An economic principle stating that, holding all else constant, as one input variable is increased, there is a point at which the marginal per unit output starts decreasing.

Diseconomies of Scale

The phenomenon where an increase in production leads to higher per-unit costs, often due to inefficiencies associated with scale.

Output Units

The measurable quantities or volumes of goods or services produced by a company or industry.

Minimum Efficient Scale

The smallest scale of production where long-term average cost is minimized, helping businesses realize economies of scale.