Which of the Following Is an Example of a Fixed

question 143

Multiple Choice

Which of the following is an example of a fixed asset for a manufacturer of road building equipment?

• A) patents held on a new type of asphalt
• B) shipping area for finished goods and receiving area for component parts
• C) computer cartridges
• D) cans of yellow paint for painting equipment

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Definitions:

Intangible Capital

Non-physical assets possessed by a company, such as intellectual property, brand names, and organizational knowledge that contribute to the company's value.

Tangible Capital

Physical assets owned by a firm that are used in the production process, such as buildings and machinery.

Goodwill

An intangible asset that represents the value of a company's brand name, customer relationships, employee relations, and other non-physical assets.

Human Capital

The stock of habits, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.