Question

Which of the following is an example of investment (I) Group of answer choices a. new plants and equipment purchased by a firm. b. new houses purchased by households. c. an increase in inventory. d. All of the above are examples of investmen

Answer 1

Answer:

A. new plants and equipment purchased by a firm.

Explanation:

Option B is wrong because anything purchased by households cannot be the investment for a firm.

Option C is wrong because inventory is a current asset. Current assets cannot be an investment.

Option A is correct because if a company purchases any non-current assets like plant and equipment, its an investment for them.