A firm invest its Profits to buy new machinery or to build new factories so that production can be e...........

Economic Affairs Growth and Indicators

A firm invest its Profits to buy new machinery or to build new factories, so that production can be expanded. These expenses which raise productive capacity. This investment is known as

Investment expenditure.

Depreciation maintenance expenditure.

Lay off expenditure.

Progression investment.

छोटे Courses बड़े Results

Master Growth and Indicators

Prepare through Micro-courses

Try Now

Explanation:

Profits are often used by the producers in the next period to buy new machinery or to build new factories, so that production can be expanded. These expenses which raise productive capacity are examples of investment expenditure.