Answer:
A current asset is any asset that will provide an economic value for or within one year. Premises, or the property where business is done, is a part of the property, plants, and equipment, or PP&E, account. All PP&E has a useful life longer than one year, premises included, so it is considered a non-current asset.
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Explanation:
it is called Formalization
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Answer:
escalation of commitment
Explanation:
Penny invest into the business additional funds ignoring the expected outcome of the business (the future returns are not expected to increase)
Penny is not doing the proper analysis of the past six month
The invested funds, time and other resources should not be considered they are sunk cost. The 50,000 will increase the losses not cut them as the return are not going to improve. Additional funds should be invested when there is a financial need due to other project which required more lverage and not to make up for revenues falling behind budget
Penny avoids to acknowle the true fact of the business.
I believe the answer is: hiring workers
producing goods
distributing goods
buying materials
Capital investment would most likely be done in order to obtain and increase the amount of income, which is why most of it used would be spend to either advertising, production, and distribution. Paying taxes and repaying investors would be conducted after the income is obtained, not before.
