Over time, capital wears out. The official term for this is
A) wear and tear.
B) depreciation.
C) capital dissolution.
D) a stock market crash.

Question

Quizplus · Accepted Answer

Depreciation is the official term for the wearing out or reduction in value of capital over time. Option A, wear and tear, is a common term for the same concept but not the official term. Option C, capital dissolution, refers to the company or business coming to an end and liquidating its assets. Option D, a stock market crash, is unrelated to the wearing out of capital.

Over Time, Capital Wears Out