Question

Expenditure by business on capital goods is known as What?

Answer 1

Answer:

Expenditure by business on capital goods is known as Capital Expenditure.

Explanation:

Answer 2

Expenditure by businesses on capital goods is known as Investment Spending or Capital Expenditure.

Explanation:

Capital expenditure or investment spending mainly deals with business expenditure on capital goods or factor/inputs of production which are used in the production process.Some of the examples of investment spending or capital expenditure commonly include monetary spending buildings,equipment,machinery,raw materials,physical inputs and so on,which will subsequently contribute to the production and profit level of the firms or companies.Capital expenditure is different from financial investment that refers to business investment on financial products such as stocks,bonds,debentures etc.