Asked by Genelyn Silva on Jun 18, 2024
Verified
We would not consider ________ an act of capital investment.
A) a son paying for his mother to go back to college
B) a company purchasing solar panels for its headquarters
C) a city government building a new fire station
D) a florist delivering roses on Valentine's Day
Capital Investment
Funds invested in a firm or enterprise for the purposes of furthering its business objectives, including the purchase of physical equipments, property, or technology.
Solar Panels
Devices that convert sunlight into electricity, used as a renewable energy source to power buildings, homes, and more.
- Elucidate the definition of investment in the realm of economics and make a distinction from ordinary financial dealings.
Verified Answer
SL
Sarah LarsenJun 22, 2024
Final Answer :
D
Explanation :
Capital investment refers to funds invested in a firm or enterprise for the purpose of furthering its business objectives. The purchase of long-term assets such as equipment, buildings, or machinery is typically considered capital investment. Option D, a florist delivering roses on Valentine's Day, represents a short-term operational expense rather than an investment in long-term assets, making it not an act of capital investment.
Learning Objectives
- Elucidate the definition of investment in the realm of economics and make a distinction from ordinary financial dealings.
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