Question

Assertion (A): Car purchased by the hotel for the purpose of tourism facilitation is a Capital Good.

Reason (R): The car is purchased by the hotel to provide long term service to the consumers.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A). 

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).

Explanation:

Fixed or tangible assets purchased by manufacturers or enterprises to produce goods and services are known as capital goods.