1 of 201 of 20 Items Question Which of these BEST represents a capital investment for a company?(1 point) Responses advertising advertising hiring new employees hiring new employees downsizing factory staff downsizing factory staff buying new equipment
buying new equipment
The option that BEST represents a capital investment for a company is buying new equipment.
To determine which option represents the best capital investment for a company, we need to understand the concept of capital investment and consider its benefits.
Capital investment refers to the allocation of funds or resources in long-term assets that are expected to create value for a company over an extended period. This investment aims to generate income and improve the company's efficiency, productivity, and competitiveness.
Now, let's analyze each option in light of these principles:
1. Advertising: While advertising plays a crucial role in promoting a company's products or services, it does not represent a long-term asset or generate direct income. Therefore, it may not be considered the best representation of a capital investment for a company.
2. Hiring new employees: Hiring new employees can be viewed as a capital investment when the company believes that the additional human resources will bring significant value, increase productivity, or expand operations. Staffing decisions are typically based on the company's growth strategy and long-term objectives, making this option a potential capital investment.
3. Downsizing factory staff: Downsizing factory staff refers to reducing the number of employees in a particular department or division. Although this action may result in cost savings, downsizing does not involve expanding or investing in long-term assets. Consequently, it does not align with the notion of capital investment.
4. Buying new equipment: Investing in new equipment can be a significant capital investment for a company. This type of investment helps improve productivity, efficiency, and innovation within the organization, leading to potential long-term financial benefits.
Considering the explanations provided, the option that BEST represents a capital investment for a company is "buying new equipment."