Which of the Following Assets Held by a Manufacturing Business

question 19

Multiple Choice

Which of the following assets held by a manufacturing business is a § 1231 asset?

• A)Inventory.
• B)Office furniture used in the business and held less than one year.
• C)A factory building used in the business and held more than one year.
• D)Accounts receivable.
• E)All of these.

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Definitions:

Funding of R&D

The financial investment allocated towards research and development activities in order to innovate, enhance product quality, or create new products.

Established Corporations

Large, well-known companies that have been in existence for a considerable amount of time, typically characterized by strong brand recognition and financial stability.

Expected Rate of Return

The profitability anticipated on an investment over a given period, often expressed as a percentage.

Imitation

The action of using someone or something as a model and replicating their behavior, actions, or processes.