When setting up a business, you might need to purchase a building, computer, filing cabinets and furniture.This type of purchase would be called ____ by an economist.
A)capital investment
B)business consumption expenditures
C)investment in human capital
D)none of the above

Question

Quizplus · Accepted Answer

These are purchases made to acquire assets that will be used in the production of goods and services, generating income for the business. As such, they are considered capital investments.

When Setting Up a Business, You Might Need to Purchase