Five college graduates decide to open a laundry service company.They import six commercial washing machines from Italy to set up a factory.In this case,the commercial washing machines are best referred to as a(n)________.
A) capital item
B) shopping product
C) expense item
D) convenience product
E) specialty product

Question

Quizplus · Accepted Answer

A)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
B)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
C)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
D)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
E)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.

Five College Graduates Decide to Open a Laundry Service Company