Question

Investment is characterized by all of the following, except: (a) decisions from an array of possible alterative actions; ( b) uncertainty about the stream of returns over time; (c) financing exclusively from retained earnings; (d) an upward sloping supply curve for capital assets.

Answer 1

Answer:

C

Explanation:

An investment can be financed using debt. Investment isn't only financed by retained earnings.

There are a different array of investments available to a firm. The firm would have to choose investments based on its objectives and the most profitable investment based on its NPV, IRR, payback period or profitability index.

There is usually uncertainty about the stream of cash flows from an investment.