Which one of the following is a capital expenditure?
AExpenditure incurred in connection with the renewal of a Trade Mark.
BGratuities paid to Directors on termination of their services.
CCompensation paid to Directors on termination of their services
DRoyalty paid in installments for the purchase of rights to manufacture and sell patient medicines.
Correct answer
C. Compensation paid to Directors on termination of their services
Explanation
Compensation paid to Directors on termination of their services is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.