If Mark Owns Shares in General Custard Co

question 82

Multiple Choice

If Mark owns shares in General Custard Co., he may bring his proposal for a new subdivision, branching out into ice cream, before the shareholders if he:

• A)owns at least 5% of the GC Co.stock.
• B)owns at least 10% of the GC Co.stock.
• C)limits it to 5,000 words.
• D)has not made a proposal yet this year.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Indirect Method

An approach used in cash flow statements to adjust net income for changes in non-cash items to calculate cash provided by operating activities.

Operating Activities

Transactions and events that pertain to the core business functions of an organization, influencing net income.