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If a business purchases two laptop computers for use in the office, the computers would be considered consumer goods.

A) True
B) False

1 Answer

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Final answer:

Two laptop computers purchased by a business for office use are considered capital goods because they are used to produce other goods or services, not consumer goods.

Step-by-step explanation:

If a business purchases two laptop computers for use in the office, the computers would be considered capital goods rather than consumer goods.

Goods are classified based on their end use. Consumer goods are those used by individuals for personal satisfaction and everyday use, like shoes or backpacks. Capital goods, on the other hand, are used by businesses to produce other goods or services, which in this case includes the laptop computers purchased for office work. These computers are going to be employed for business operations such as maintaining records, managing communications, or performing calculations, which are essential for the ongoing functioning and productivity of the business, contributing to the creation of other services or goods.

Understanding the distinction between consumer and capital goods is important because it affects how businesses plan their expenditures and manage their resources. Capital goods such as office computers are regarded as investments in the business's operational infrastructure.

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