Which of the following is NOT a method of asset disposal?

Prepare for CGFM Exam 3 - Financial Management Functions with a comprehensive suite of questions and explanations. Perfect your knowledge with flashcards and multiple-choice questions to excel in your certification exam!

Investing in new assets is not a method of asset disposal. Asset disposal refers to the processes involved in getting rid of or transferring ownership of an asset that is no longer needed or useful. This can include actions such as scraping the property, which typically means selling off scraps or components; trading the property, which involves exchanging it for another asset; and donating the property, where the asset is given away to a charitable organization or individual.

In contrast, investing in new assets focuses on acquiring new items or resources rather than disposing of existing ones. This action is part of asset management and acquisition strategies, rather than disposal, emphasizing the enhancement or improvement of the asset portfolio rather than the removal of assets.

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