When Nike Bought Out Converse Shoes,it Was an Example of a Transfer

question 20

Multiple Choice

When Nike bought out Converse Shoes,it was an example of a transfer of ownership to

• A) direct competitors.
• B) non-direct competitors.
• C) noncompetitors.
• D) horizontal integration.
• E) None of the Above.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying shareholders, including issuing equity, obtaining loans, and paying dividends.

Investing Activities

Transactions that involve the purchase or sale of long-term assets and investments are considered investing activities.

Non-current Assets

Non-current assets are long-term resources owned by a company, expected to provide economic benefits beyond one year, such as property, plant, and equipment (PP&E), and intangible assets.

Direct Method

A cash flow statement presentation that lists major categories of gross cash receipts and payments.