Chapter 10, Problem 10AA

To determine

The way through which individuals invest in businesses and the reward on such investment.

Answer to Problem 10AA

Investors usually earn return in the form of interest or dividend on their investments.

Explanation of Solution

There are so many ways through which an individual makes investment. They can purchase shares of a company, by doing that they can get ownership in a company. When money is invested in shares, reward is earned in the form of dividends. Money can also be invested through giving loans or deposits, in such case the reward is earned in the form of interest.

Economics Concept Introduction

Introduction:Investment is referred to as the course of investing money into a business.