One of the Primary Motives for Adding Fixed Assets to a Firm

question 138

Multiple Choice

One of the primary motives for adding fixed assets to a firm is ________.

• A) expansion
• B) replacement
• C) renewal
• D) transformation

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Definitions:

Price Drop

A decrease in the market price of a good or asset, usually driven by changes in demand, supply, or broader economic factors.

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Basket

A term used in finance to refer to a collection of investments, commodities, or currencies held together.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.