Question

______ are assets that must be purchased in large, discrete units. a. Lumpy assets b. Fixed...

______ are assets that must be purchased in large, discrete units.

a. Lumpy assets

b. Fixed assets

c. Excess capacity assets

d. Spontaneously generated assets

e. Long-term assets

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Answer #1

Ans a. Lumpy assets

Lumpy assets are assets that must be purchased in large, discrete units. These assets can be purchased in large increments only eg. cannot buy half a machine. They have a high effect on Fixed assets to sales ratio.

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