What term describes a person who commits capital to gain financial returns?

What term describes a person who commits capital to gain financial returns?

• A. Investor
• B. Entrepreneur
• C. Lender
• D. Benefactor

Answer: (A)

Investing is about putting money into assets or ventures with the goal of earning profits, growth, or income over time. An investor commits capital with the expectation of financial returns, while taking on some risk in the possibility of gain. This role focuses on allocating funds to generate gains, rather than simply creating a business, lending money, or donating resources. A lender, for instance, provides money and expects repayment with interest, not ownership or profit beyond the agreed interest. An entrepreneur starts and runs a business, aiming to build value and profits through the venture itself. A benefactor donates without the expectation of financial returns. So the best term for someone who commits capital to gain financial returns is investor.

Investing is about putting money into assets or ventures with the goal of earning profits, growth, or income over time. An investor commits capital with the expectation of financial returns, while taking on some risk in the possibility of gain. This role focuses on allocating funds to generate gains, rather than simply creating a business, lending money, or donating resources.

A lender, for instance, provides money and expects repayment with interest, not ownership or profit beyond the agreed interest. An entrepreneur starts and runs a business, aiming to build value and profits through the venture itself. A benefactor donates without the expectation of financial returns. So the best term for someone who commits capital to gain financial returns is investor.