In Calculating Cash Flows from Operating Activities Using the Indirect

question 4

Multiple Choice

In calculating cash flows from operating activities using the indirect method a gain on the sale of equipment is

• A) added to net income.
• B) deducted from net income.
• C) ignored because it does not affect cash.
• D) not reported on a statement of cash flows.

---

Definitions:

Multidomestic Strategy

A strategy used by companies that involves customizing products and marketing strategies to specific national conditions to gain local market share.

Market Diversity

The variety and heterogeneity of products, services, consumers, and entities within a market, enhancing competition and innovation.

Polycentric View

Refers to a perspective in international business where a company adapts its strategies and operations to the local conditions of the countries it operates in, often giving significant autonomy to each local branch.

Divestiture

The process of selling off subsidiary business interests or investments by a company to refocus its operations or to raise capital.