A capital investment is one that A. is only undertaken by large corporations. B. applies only to investment in fixed assets. C. has the prospect of long-term benefits. D. has the prospect of short-term benefits.
Question
A capital investment is one that A. is only undertaken by large corporations. B. applies only to investment in fixed assets. C. has the prospect of long-term benefits. D. has the prospect of short-term benefits.
Solution
The correct answer is C. A capital investment is one that has the prospect of long-term benefits. This type of investment is made with the expectation that the investment will generate profits or bring about positive outcomes for the investor over a long period of time. It is not limited to large corporations or only to investments in fixed assets.
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