Asked by Emily Apodaca on May 27, 2024
Verified
Firms typically invest in real assets such as plant and equipment because of the services they provide.
Real Assets
Physical assets such as real estate, commodities, and natural resources that have intrinsic value.
Plant and Equipment
Tangible long-term assets owned by a business, used in the production or supply of goods and services, such as machinery and buildings.
- Distinguish between physical and financial assets.
Verified Answer
AB
Alison BaronMay 31, 2024
Final Answer :
True
Explanation :
Firms invest in real assets such as plant and equipment because they provide tangible services such as producing goods or facilitating the delivery of services.
Learning Objectives
- Distinguish between physical and financial assets.