Which of the Following Is a Reason That Organizations Invest

question 144

Multiple Choice

Which of the following is a reason that organizations invest in capital assets?

• A)Expectation that they will generate a future return
• B)Expectation that they will be sold to customers
• C)Expectation that they can be depreciated
• D)Expectation that the capital asset can be held for resale

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Definitions:

Independent Contractors

Workers who provide services to a business under terms specified in a contract or agreement, without being considered employees of the business.

Principal

In finance, it refers to the original sum of money borrowed in a loan or invested, excluding any interest or dividends.

Liable

Subject to legal responsibility, often implying a requirement to compensate for damages or loss caused.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm that constitutes the basis for a claim by the injured party.