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In which of the following answers could both examples be categorized as (nonfinancial) investment? A. Buying...

In which of the following answers could both examples be categorized as (nonfinancial) investment?

A. Buying stock on the NYSE. A firm building a new factory.

B. A firm building a new factory. Increasing your firm's inventory.

C. Buying bonds. Earning an MBA.

D. Buying stock on the NYSE. Buying bonds.

E. Increasing your firm's inventory. Earning an MBA.

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Answer #1

A financial investment can be defined as buying a monetary asset in the expectation that the asset will provide return.

For example purchase of bonds, share or buying plant and machinary.

A Non-financial investment can be defined as the long-term investment in assets, residential houses, other buildings and structures, fixed assets and inventory which are used for making production or using in some other way.

For example;buying plant and machinary and houses.

As it can be seen in the option E, the inventory investment is a non-financial investment and earning as a MBA is also a non-financial investment.

Option E contains both invesment as the non-financial investments.

Hence option E is the correct answer.

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