The basic motive for capital expenditure is to ________.
A) expand operations
B) replace current assets
C) renew current assets
D) improve leverage

Question

Quizplus · Accepted Answer

The basic motive for capital expenditure is to expand operations. Capital expenditures are investments made by a company to acquire or upgrade existing fixed assets, such as equipment, buildings, or machinery, in order to expand or improve its business operations. Capital expenditures are usually long-term investments that are expected to generate future cash flows and increase profitability. Expanding operations is a common reason for companies to make capital expenditures, as it allows them to increase production capacity, enter new markets, or improve efficiency.

The Basic Motive for Capital Expenditure Is to ________