Question : Which of the following is an example of a capital transfer?
Option 1: A government subsidy to a private company
Option 2: A payment for a good or service
Option 3: A tax on imports
Option 4: A gift from one person to another
Correct Answer: A government subsidy to a private company
Solution : The correct answer is a) A government subsidy to a private company.
A capital transfer refers to the transfer of financial or non-financial assets between sectors, typically without any corresponding exchange of goods or services. It involves the transfer of assets, such as funds or property, that are used to acquire, create, or enhance fixed assets or financial assets.
A government subsidy to a private company can be considered a capital transfer. The government provides funds to the private company, which can be used for acquiring or enhancing fixed assets or financial assets.
Related Questions
Trending Articles/News
