How Is Investment Defined as an Economic Concept

question 242

Multiple Choice

How is investment defined as an economic concept?

• A) Investment is primarily the market value of all shares of stock held by the public.
• B) Investment is primarily the market value of all equipment, buildings, and inventories held by corporations, partnerships, and proprietorships.
• C) Investment is primarily the sum of expenditures by businesses on new capital goods that will yield a future stream of income.
• D) Investment is primarily the portion of your savings held in an interest-earning account.

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Definitions:

Legumes Division

A segment within a company that focuses on the production, distribution, and sale of legume-based products.

Net Operating Income

A company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenues.

Return On Investment (ROI)

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Net Operating Income

This refers to the profit realized from a business's operational activities, excluding taxes and interest.