Which of the following is typically the primary need of investors who provide funds to companies?

• A. To manage the day-to-day operations of the company
• B. To set government policy for the industry
• C. To earn a return on their investment
• D. To purchase raw materials for production

Answer: (C)

Verified step by step guidance

1. Understand the role of investors in a company: Investors provide capital to companies with the expectation of receiving benefits in return.
2. Identify the primary motivation of investors: Typically, investors seek to earn a return on their investment, which can come in the form of dividends, interest, or capital gains.
3. Recognize that managing day-to-day operations is usually the responsibility of the company's management team, not the investors.
4. Note that setting government policy is a function of policymakers and regulators, not investors.
5. Understand that purchasing raw materials is an operational activity handled by the company, not a primary concern of investors.