Which of the Following Is Not a Reason for Business

question 49

Multiple Choice

Which of the following is not a reason for business investment?

• A)to replace worn out or obsolete plant and equipment
• B)to acquire financial assets that will pay a future income stream to the business
• C)to increase the capital stock
• D)to add to inventories

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Definitions:

Trade

The exchange of goods and services between individuals, businesses, or countries, which can be domestic or international in nature.

Corn

A cereal plant that yields large kernels on a cob, used as food for humans and livestock and as a raw material in industry.

Factor Endowments

Refers to the quantity and quality of resources a country or region possesses, such as labor, land, and capital.

World Trade

The exchange of goods, services, and capital between countries and territories across the globe.