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Business Studies

Fixed Assets and Current Assets

Addition to t...

Question

Addition to the capital stock of an economy is termed as ______________.

A

Investment

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B

Capital Loss

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C

Consumption of Fixed Capital

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D

All of these

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Solution

The correct option is A Investment
Addition to the capital stock of an economy is termed as investment. Investment can be referred as a process of capital formation, or a process that increases the stock of capital during the year.
Formula: Investment= change in capital stock during the year.

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