Which of the Following Transactions Would Not Be Classified as a Financing

question 139

Multiple Choice

Which of the following transactions would not be classified as a financing activity?

• A) Purchase of treasury shares
• B) Payment of dividends
• C) Issuance of bonds at a discount
• D) Purchase of a long-term investment in bonds

Understand the conditions for and implications of Pareto efficiency in resource allocation.

Grasp the concept of welfare economics, including the utility possibilities frontier and how it reflects the efficient allocation of resources.

Analyze scenarios involving trade among individuals to identify mutually beneficial exchanges.

Understand the first theorem of welfare economics and its implications for resource allocation in competitive markets.

---

Definitions:

Entity

An organization or being with a distinct and independent existence, usually referred to in legal, financial, or tax contexts.

No-Par Value Stock

Capital stock that has not been assigned a value in the corporate charter.

Legal Capital

The minimum amount of capital that a corporation is required to maintain, as mandated by corporate laws, to protect creditors.

Dividends

Shareholders' receipts of payments from a corporation, generally tied to the distribution of earnings.