Which are the most likely uses of capital invested in a business? Check all that apply.

a. paying taxes

b. hiring workers

c. repaying investors

d. producing goods

e. distributing goods

f. buying materials

b. hiring workers

d. producing goods

e. distributing goods

f. buying materials

Explanation:

Capital is wealth set aside for the creation of more wealth, so capital invested in a business must be used exclusively for the purpose of the business in order to generate superior returns to investors via profit.

Payment for hiring workers is incurred for the purpose of the business, expenses on production activities are necessary for the purpose of the business, distribution and material purchases are all expenses for the purpose of generating returns to the investors. However, payment of taxes and repayment to investors cannot be paid from capital.