The elimination of one of the two buildings used for corporate offices after a merger is an example of reduction in Blank______ capital.Multiple choice question.realworkingfixed
Question
The elimination of one of the two buildings used for corporate offices after a merger is an example of reduction in Blank______ capital.Multiple choice question.realworkingfixed
Solution
The correct answer is "fixed" capital. This term refers to assets that are not consumed or destroyed during the production of a good or service, but are instead used over and over again. Buildings, machinery, and equipment are all examples of fixed capital. In this case, the elimination of a building used for corporate offices would reduce the company's fixed capital.
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