Which of the Following Would Be Classified as Private Investment

question 106

Multiple Choice

Which of the following would be classified as private investment spending?

• A) A family's purchase of a new home
• B) An automobile producer's purchase of steel for use in building new cars
• C) A paper company's purchase of timber
• D) A household's purchase of AT&T stock
• E) The government's purchase of a new office building

---

Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business, such as buildings and machinery.

Net Working Capital Turnover

A measure of how effectively a company uses its net working capital to generate sales.

Total Fixed Assets

The combined value of all long-term assets that a company owns, which are not expected to be converted to cash within a year.

Long-Term Liabilities

Long-term liabilities are debts or obligations that are due more than one year in the future, impacting a company's long-term financial sustainability and planning.