Which of the Following Is a FALSE Statement Regarding Capital

question 19

Multiple Choice

Which of the following is a FALSE statement regarding capital expenditures?

• A)They are a firm's investments in long-lived assets.
• B)They may be tangible assets or intangible assets.
• C)They determine a company's future direction.
• D)They usually involve large amounts of money and the decisions are frequently recoverable.

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Definitions:

Normal Good

A type of good for which demand increases as the income of individuals or the economy increases.

Income

Payments obtained regularly from employment or investment returns.

Demand Curve

A visual depiction of how the price of a product influences the amount consumers are willing to buy.

Market Demand Curve

represents the total quantity of a good or service that consumers in a market are willing and able to purchase at different prices.