When an entrepreneur takes some of his profits and replaces old machinery, he is investing in

Social Studies

1 answer:

Nataliya [291]3 years ago

6 0

The correct answer would be, Assets.

When an entrepreneur takes some of his profits and replaces old machinery, he is investing in Assets.

Explanation:

An entrepreneur is a person who initiates a business and runs it to earn profits. He is fully aware of the risk associated with the business in the form of loss, but he puts his efforts to run the business in the hope of earning profits.

Assets are things which add value to the business. Assets are basically a company's long term, fixed, liquid or current possessions. Assets may include the following:

Cash
Treasury Bills
Lands
Property
Machinery
Furniture
Savings
Inventory, etc

So When an entrepreneur takes some of his profits and replaces old machinery with the new one, he is actually adding value to the business, which means he is investing in the assets.

Learn more about Assets at:

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