Asked by Gruia Ghiroaga on Apr 24, 2024
Verified
Investment includes
A) the purchase of stock options of Microsoft.
B) the purchase of software by an accounting firm.
C) the purchase of global positioning units for cruise missiles by the government.
D) the purchase of new chalk by a local school boarD.
Investment
Assigning financial resources in the hope of creating revenue or gains.
GDP
Stands for Gross Domestic Product, which is the total value of all goods and services produced within a country's borders in a specific time period.
Accounting Firm
A business that provides a wide range of accounting services such as audit, bookkeeping, tax preparation, and consulting to individuals and organizations.
- Gain insight into the notion of investment from an economic perspective, highlighting the distinctions between net and gross investment.
Verified Answer
MR
Melissa RamosMay 02, 2024
Final Answer :
B
Explanation :
Investment refers to the purchase of assets that will generate future income or benefits. The purchase of software by an accounting firm is an investment as it will help the firm to provide better services to clients and generate more revenue in the future. Option A is a speculative investment and may not generate any income or benefits for the investor. Option C refers to military spending and is not a traditional investment. Option D is a routine expense and not an investment.
Learning Objectives
- Gain insight into the notion of investment from an economic perspective, highlighting the distinctions between net and gross investment.