Ryan,a successful entrepreneur,is planning to get into the petroleum business.He has bought two jack-up rigs running into millions of dollars to start the business.These rigs are examples of:
A)installations.
B)accessory equipments.
C)supplies.
D)component parts.

Question

Quizplus · Accepted Answer

The two jack-up rigs are installations as they are large, fixed assets that are used in the production process of the petroleum business. Installations are generally expensive and have a long useful life, making them a significant investment for the business. Accessory equipments, supplies, and component parts are usually smaller items that support the operation of an installation or machinery.

Ryan,a Successful Entrepreneur,is Planning to Get into the Petroleum Business