What do you mean by Investment?

Money spent for investment

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Money that is spent to buy assets such as land,building, machines and other equipment.

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Money used by owners for luxuries.

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The money used to build the factory only.

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Solution

The correct option is B Money that is spent to buy assets such as land,building, machines and other equipment.

MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. Having assured themselves of these conditions, MNCs set up factories and offices for production. The money that is spent to buy assets such as land, building, machines and other equipment is called investment.

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