Masonry Inc

question 28

Multiple Choice

Masonry Inc.'s stated purpose is to perform the stonework on buildings and other structures. Masonry contracts with New Contracting to pour the pilings for a bridge's foundation despite lacking the skill and license to do the work. This is most likely

• A)an ultra vires act.
• B)within the corporation's express powers.
• C)within the corporation's implied powers.
• D)allowable and proper as an act to profit corporate shareholders.

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Definitions:

Statement of Cash Flows

A report detailing how modifications in balance sheet accounts and earnings influence cash and cash equivalents.

Common Stock

A type of securities representing ownership in a corporation, whereby holders have voting rights and may receive dividends.

Noncash Investing

Investment activities that do not involve the immediate inflow or outflow of cash, such as acquiring assets through the issuance of equity.

Capital Acquisitions Ratio

A financial metric that compares total acquisitions of property, plant, and equipment with cash flow from operating activities, indicating the extent to which operating cash flows are used to finance capital expenditures.