Question

Which one of the following is not a reason for making an operational investment? All of...

Which one of the following is not a reason for making an operational investment?

All of the above are reasons to acquire long-term operating investment.
Need to replace worn-out equipment or facilities.
To expand operating capacity.
To take advantage of low interest rate financing
Need to keep up with technological advances
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Answer #1

Answer :To take advantage of low interest rate financing

is not a reason for making an operational investment

explanation

1) operational investment is making for the purpose of improving the operational performance of the business

2) replacing the worn out parts and machines is operational decision

3) to expand operating capacity is also the operational decision

4) need to keep with the technological changes is also the operational strategy

5) take advantage of the low interest rate financing is not an operational investment decision

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