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Question
______ is subject to depreciation.
Options
Land
Labour
Capital
Entrepreneur
MCQ
Fill in the Blanks
Solution
Capital is subject to depreciation.
Explanation:
- Capital, such as machinery, buildings, and equipment, is subject to depreciation because these assets wear out or lose value over time due to use, obsolescence, or ageing.
- Depreciation reflects the gradual reduction in their productive capacity.
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