What type of relationship does expected profitability have with respect to Investment spending?
A) Negative
B) Positive
C) Indirect
D) Constant

Question

Quizplus · Accepted Answer

Expected profitability and investment spending have a positive relationship, meaning as expected profitability increases, investment spending also increases. This is because when a company expects higher profitability, it is more willing to invest in new projects, expand its business, and purchase new assets.

What Type of Relationship Does Expected Profitability Have with Respect