All Businesses Are Involved in Three Types of Activity-Financing, Investing

question 10

Multiple Choice

All businesses are involved in three types of activity-financing, investing, and operating. For example, the founder of Tootsie Roll needed financing to start and grow his business. This may have come from either personal savings or outside sources. The cash obtained was then invested in the equipment necessary to run the business, such as mixing equipment and delivery vehicles. Once this equipment was in place, the founder could begin the operating activities of making and selling candy. Paul D. Kimmel, et al., Financial Accounting, 3^rd edition

• A) Argument; conclusion: The cash obtained ... delivery vehicles.
• B) Argument; conclusion: Once this equipment was in place ... selling candy.
• C) Argument; conclusion: The founder of Tootsie Roll ... grow his business.
• D) Argument; conclusion: All businesses are involved ... and operating.
• E) Nonargument.

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Definitions:

Axillary Vein

A large blood vessel that conveys blood from the lateral aspect of the thorax, arm, and shoulder back to the heart.

Brachiocephalic Vein

A large vein in the upper chest that forms from the union of the internal jugular and subclavian veins and drains blood from the head, neck, and upper limbs.

Hepatic Portal Vein

A blood vessel that carries blood from the gastrointestinal tract and spleen to the liver, crucial for nutrient processing.