Question $(3)$

Which statement accurately describes the capital investment cycle?

It refers to the process of continuous investment of surplus operating funds into long$-$term

financial assets such as bonds and equities.

It refers to the length of time between start up of a business and the expected useful life of the

main operating property used by the business.

It refers to the cycles of acquisition, use and disposal of fixed assets, which can vary in length

depending upon the nature and use of the fixed assets.

It refers to the expected holding period for investments in property that are held primarily for

rental purposes or capital gains.