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Which description fits a capital product bought by a business?
AA small, cheap item with a life span under one year
BAn item that is built into the product being made
CA large, expensive item with a long life span
DA raw material that has had little processing
Answer & Solution
Correct answer: C. A large, expensive item with a long life span
1. Business products are classified as either capital products or expense items.
2. Capital products are usually large, expensive items with a long life span.
3. Buildings, large machines and airplanes are the named examples.
4. Small, cheap, short-lived items are expense items, which is the opposite class.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.6 What Is a Product?_
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