________ is a commitment of capital to a venture, project or asset. Group of answer choicesInvestmentLiquidityFinancial ProcessSolvency
Question
________ is a commitment of capital to a venture, project or asset.
Group of answer choices
- Investment
- Liquidity
- Financial Process
- Solvency
Solution
The correct answer is Investment.
An investment is a commitment of capital to a venture, project, or asset with the expectation of generating a return or profit over time. This process is fundamental in both personal finance and business contexts, where individuals or organizations allocate resources—often in the form of money—into various assets such as stocks, real estate, or startups. The primary goal of investing is to create wealth and increase the value of the initial capital through appreciation, dividends, interest, or other income-generating activities.
In contrast, liquidity refers to how easily an asset can be converted into cash; financial processes involve the methods and systems used in managing finances; and solvency relates to an entity's ability to meet its long-term financial obligations. Thus, only "investment" fits the description of a commitment of capital.
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