Question : Assertion: A Purchase of patent is classified as investing activities in case of all enterprises
Reason R :- purchased of patent by finance company is classified under financing activities
In the context of above two statements, which of the following is correct
Option 1: Assertion A and reason R are correct and reason R is correct explanation of assertion A
Option 2: Assertion A and reason R are correct but reason R is not the correct explanation of Assertion a
Option 3: Both assertion A and reason R are not correct
Option 4: Assertion A is correct but the reason R is not correct
Correct Answer: Assertion A is correct but the reason R is not correct
Solution : Answer = Assertion A is correct, but the reason R is not correct.
Assertion A is correct because the purchase of a patent is typically classified as an investing activity for most enterprises. However, Reason R is incorrect as the classification of the purchase of a patent as financing or investing activities depends on the nature of the business, not specifically whether it's a finance company.
Hence, the correct option is 4.
