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Which of the following descriptions BEST defines investment activities?

a) Activities that generate personal expenses
b) Activities aimed at generating profits or income
c) Activities involving business operations
d) Activities strictly for recreational purposes

1 Answer

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Final answer:

Investment activities are best defined as actions aimed at generating future profits or income. These often involve the purchase of long-term assets or investment in projects expecting future gains, with businesses raising capital through various sources.

Step-by-step explanation:

The best definition for investment activities among the options provided is b) Activities aimed at generating profits or income. Investment activities typically involve decisions by firms or individuals to spend money in the present with the expectation of earning future profits. This can include purchasing long-term assets like machinery or buildings, or putting funds into research and development. Companies may raise capital for such investments through various means such as early-stage investors, reinvesting profits, borrowing, or selling stock.

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