Which of the Following Is an Example of an Economic

question 61

Multiple Choice

Which of the following is an example of an economic investment?

• A) building a new sales force training facility
• B) putting funds in a certificate of deposit
• C) purchasing a share of Google stock
• D) trading a bond certificate

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Definitions:

Expenses

Expenses refer to the outflow of funds or the incurrence of a liability by a business as a result of its operations, such as costs for materials, labor, and overhead.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities.

Owner Investments

Funds or assets introduced by the owner(s) into the business to provide financial resources for operations or expansion.

Revenues

The total income generated from sales of goods or services before any expenses are deducted.