Which of the Following Would Be Classified as Investment Property

question 2

Multiple Choice

Which of the following would be classified as investment property under IAS40?

• A)Retail premises leased from the entity by shopkeepers
• B)Retail premises owned by the entity
• C)Retail premises leased to an agent who leases them to shopkeepers
• D)Retail premises under construction & for subsequent sale

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Definitions:

R&D

Research and development; activities undertaken by companies or governments to innovate and introduce new products or services.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business, potentially including high startup costs, stringent regulations, or strong brand loyalty among consumers.

Patent

An exclusive right given to inventors to produce and sell a new product or machine for 20 years from the time of patent application.

Imitation

The action of using someone or something as a model and copying their behavior or actions.