The process of accumulating capital is called:
A. capitalization
B. loanable funds
C. investment
D. debt management
Answer (2)
The process of accumulating capital is called investment. Investment can be done in various categories like land, labor and capital. Investment in land does not mean investing only in the lands that are cultivated or where buildings can be built. It can also include land where natural resources are available. Capitals can be machinery, buildings, raw materials and several other things. Labor will include people giving physical labor as well as those people that use their intelligence. So brain and physical labor are both investments.
The process of accumulating capital is called investment, which involves allocating resources to generate returns or build up capital for economic activities. This process can include physical, human, and natural capital and plays a crucial role in business growth and economic development. Therefore, the correct option is C. investment.
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