Which of the Following Would Be Classified as an Operational

question 77

Multiple Choice

Which of the following would be classified as an operational (fixed) asset?

• A) A Ford Motor Company manufacturing plant used to manufacture the Focus line in Oakville, Ontario.
• B) Land purchased and held for sale by a realtor.
• C) Land purchased and held for development by Wal-Mart as a new store site.
• D) Land and buildings owned by Toys "R" Us that are store sites closed due to restructuring and consolidating operations.

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Definitions:

Production Possibilities

A curve or frontier that shows the various combinations of different goods that an economy can produce, given its technology and resources.

Absolute Value

The distance of a number from zero on the number line, disregarding any sign it might have, making it always a non-negative value.

Budget Line

A visual depiction of every potential mix of two products that a consumer can purchase, considering their income and the cost of these items.

Linear Relationship

A direct relationship between two variables that can be represented by a straight line on a graph.