Which of the Following Is a Reason Organizations Invest in Capital

question 62

Multiple Choice

Which of the following is a reason organizations invest in capital assets?

• A)Expectation that they will generate a future return
• B)Expectation that they will be used to build products
• C)Both the expectation that they will generate a future return and the expectation that they will be used to build products.
• D)Neither the expectation that they will generate a future return nor the expectation that they will be used to build products

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Definitions:

Rapid Growth

A phase in which a company or economy experiences significantly faster-than-average increases in revenue or expansion.

Appreciating

The increase in the value of an asset over time, which can occur due to various factors such as inflation, changes in interest rates, or increased demand.

Exports

Products or services that are shipped from one country to another for the purpose of sale or exchange.

Imports

Goods or services brought into a country from abroad for sale.