The most common motive for adding fixed assets to the firm is
A) replacement.
B) transformation.
C) expansion.
D) renewal.

Question

Quizplus · Accepted Answer

The most common motive for adding fixed assets to the firm is expansion, which refers to the growth of the business through the acquisition of new assets or facilities. Replacement, renewal, and transformation are also common reasons for adding fixed assets, but they are not as prevalent as expansion. Renewal refers to the replacement of old or outdated equipment, while replacement involves the upgrading of existing assets. Transformation refers to the conversion of existing assets into new ones, such as converting a factory into a warehouse.

The Most Common Motive for Adding Fixed Assets to the Firm