Which of the Following Is Not a Feature That Separates

question 66

Multiple Choice

Which of the following is not a feature that separates capital equipment purchases from other purchases?

• A)Capital equipment purchases do not occur with regular frequency.
• B)Capital equipment investment requires large sums of money.
• C)For accounting purposes, most capital equipment is not depreciable over the life of the item.
• D)Buyers can rarely switch suppliers in the middle of a large-scale project or dispose of capital equipment after delivery because of dissatisfaction.
• E)Capital equipment is highly sensitive to general economic conditions.

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Definitions:

SUVs

Sport Utility Vehicles, a category of motor vehicles that combine elements of road-going passenger cars with features from off-road vehicles, like higher ground clearance and four-wheel drive.

Motorcycles

Two-wheeled vehicles powered by an engine, often used for transportation, recreation, or sport.

United States

A country located primarily in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Comparative Advantage

A concept in international trade that refers to the ability of a country to produce a good or service at a lower opportunity cost than its trade partners.