One of the primary motives for adding fixed assets to a firm is ________.
A) expansion
B) replacement
C) renewal
D) transformation

Question

Quizplus · Accepted Answer

Fixed assets such as buildings, machinery, and equipment are often added to a firm for the purpose of expanding its operations and increasing its capacity to produce goods or services. This can help the firm meet growing demand and generate higher revenues and profits. While fixed assets may also be added for replacement, renewal, or transformation purposes, expansion is often the primary motive for such investments.

One of the Primary Motives for Adding Fixed Assets to a Firm