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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