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Which of the following is an example of investment in capital?

(a) reinvesting company profits in updated technology

(b)paying for employees to get a graduate degree

(c)providing discount gym memberships to employees to help them stay in shape

(d)providing a medical plan to help employees avoid getting sick and missing work

User Adocad
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1 Answer

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Answer:

(a) reinvesting company profits in updated technology

Step-by-step explanation:

Investments in capital refer to spending money to acquire physical assets for use in a business. The acquired assets are expected to assist a company to generate revenue in many financial periods. Investments in capital involve huge sums of money. Businesses may need to borrow to finance investments in capital.

Reinvesting company profits in updated technology is an example of investment in capital. The updated technology is an asset with a useful life of more than one year. It will help generate revenues into the future and make the business more competitive in the mar

User Johnnietheblack
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