The basic motives for capital expenditures are to expand operations, to replace or renew fixed assets, or to obtain some other, less tangible benefit over a long period.

Question

Quizplus · Accepted Answer

This statement is true. Capital expenditures are investment decisions made by a company to acquire, maintain, upgrade or enhance fixed assets with the aim of expanding operations, improving efficiency and productivity, or achieving other long-term benefits. Examples of capital expenditures include purchasing new equipment, constructing or expanding facilities, upgrading technology systems, and acquiring other businesses or assets. These investments are typically significant and long-lasting, requiring substantial resources and careful consideration of their potential return on investment.

The Basic Motives for Capital Expenditures Are to Expand Operations