Vidyalelo
Management · Q1

Financial Management

Graduate and Post Graduate · Management · question 1

Q1

Investment is the _______________.

A.
net additions made to the nation’s capital stocks
B.
person’s commitment to buy a flat or house
C.
employment of funds on assets to earn returns
Answer
D.
employment of funds on goods and services that are used in production process

Answer: Option C

Solution

Answer: Option C
Solution:
Investment is the employment of funds on assets to earn returns. An investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.