Question : While determining income the expenditure on which of the following items is not considered as investment ?
Option 1: Construction of factory
Option 2: Computer
Option 3: Increase in the stock of unsold articles
Option 4: Stock and share in joint stock company
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Correct Answer: Increase in the stock of unsold articles
Solution : Correct Answer is Increase in the stock of unsold articles
Because no income or capital gains are anticipated from the unsold stock, this is the case. All of the finished goods and services that a nation's citizens produce in a given year are combined to form the gross national product. An idea of flow is the GNP. No one of these headings applies to an increase in the stock of unsold items.The unsold stock of a company is not generally viewed as an investment when it produces more goods than it can sell.
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