As the Inventory of a Firm Rises

question 10

Multiple Choice

As the inventory of a firm rises

• A) there is no change in its capital.
• B) its intangible capital increases.
• C) its tangible capital increases.
• D) its social capital decreases.

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings and trees.

Earth's Crust

The outermost layer of the Earth, composed of solid rocks and minerals, which varies in thickness and composition between the oceanic and continental crust.

Tangible Property

Physical assets that can be seen, touched, and valued, such as real estate, equipment, or goods.

Perennial Vegetation

Plants that live for more than two years, providing long-term coverage and stability to the area in which they are grown, often used in sustainable agriculture and landscaping.