DECA+ Business Management and Administration Practice Exam

What type of products do capital products include?

1. Goods sold to consumers directly

2. Durable goods used for business operations

3. Non-durable goods

4. Products that lose value quickly

The correct answer is: Durable goods used for business operations

Capital products encompass durable goods that are utilized in business operations. These products are essential for the production of goods and services or for the overall functioning of a business. Unlike consumer goods, which are primarily designed for direct sale to individuals or households, capital products serve a foundational role in the production process. These items tend to possess a longer lifespan and are often significant investments for businesses. Examples include machinery, equipment, buildings, and tools that assist in generating revenue and streamlining operations. The definition aligns closely with the nature of capital products, distinguishing them from non-durable goods or consumer items that are generally transient in use or shorter in lifespan. In contrast, other options categorize goods that are not aligned with the concept of capital products. Goods sold directly to consumers focus on retail and personal use, non-durable goods refer to items intended for immediate consumption, and products that lose value quickly typically describe depreciating assets rather than those meant to facilitate business operations over the long term.