Collection of money from investors and spending money in other investment activities is classified as__________________?
Correct answer: B. Hedge funds
- A. Future funds
- B. Hedge funds
- C. Retirement funds
- D. Pension funds
Explanation
A hedge fund pools money from investors and deploys it across investment strategies and assets to seek returns. Pension and retirement funds are specifically intended to finance retirement benefits.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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