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Capital Equipment vs Business Services & Parties Involved in Acquisitions

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1. From your readings and experience, discuss the basic differences between the acquisition of capital equipment and business services. What are the salient characteristics of each?

2. Are the buying organization's staff members the only ones involved in the identification, selection, acquisition, and implementation of each?

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Solution Summary

The solution defines capital equipment acquisition as it differs from that of business services as well as listing those involved with identification, selection, acquisition and implementation of it. 242 words.

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The term capital equipment encapsulates items not permanently attached to buildings or grounds and have an individual cost of more than $5,000 (exclusive of sales and/or use tax, freight, and installation). In addition, these items are defined as possessing a useful life of one year or more. In reference to acquisitions of capital, these acquisitions entail items identified and then transferred to the asset ...

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