Which of the following statements is true? Multiple Choice

1. Economic investment refers to the creation and expansion of business enterprises.

2. Both economic investment and financial investment refer to the purchase of assets such as stocks, bonds, and real estate.

3. Economic investment refers to the purchase of assets such as stocks, bonds, and real estate.

4. Financial investment refers to the creation and expansion of business enterprises.

Question

Business

Zain

19 November, 03:17

Which of the following statements is true? Multiple Choice

1. Economic investment refers to the creation and expansion of business enterprises.

2. Both economic investment and financial investment refer to the purchase of assets such as stocks, bonds, and real estate.

3. Economic investment refers to the purchase of assets such as stocks, bonds, and real estate.

4. Financial investment refers to the creation and expansion of business enterprises.

+2

Answers (1)

Know the Answer?

Selina Watkins · Answer 1

1. Economic investment refers to the creation and expansion of business enterprises.

Explanation:

Economic investments: increase of the capital of a company. This can range from human resources, equipment, facelities, raw materials and others. in general it refers to tangible assets used into the business operations,

While Financial investments refer to allocation of cash to achieve a certain yield over a period. In financial investment we can find bonds, stock, rela state ventures, derivates among others. If it is traded with the expectation of a financial gain (cash inflow in the future are greater than cash outflow at purchase) could be considered this type of investment.