In Contrast to Base Activities, Local Economic Activities (Or Secondary

question 25

Multiple Choice

In contrast to base activities, local economic activities (or secondary activities) serve the local business and households that are recirculating the income derived through the city's economic base. In other words, we can distinguish local economic activities from export activities by thinking about whether or not the activity brings money into the city from outside sources. Which of the following activities is NOT an example of land use for local economic activity?

• A) Retail centers
• B) Restaurants
• C) Automotive services
• D) Manufacturing Center

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Definitions:

Financing Activities

Transactions involving long-term liabilities and equity, including issuing debt, repurchasing shares, and paying dividends, as part of a company's fund-raising activities.

Not Affecting Cash

Transactions or events that do not result in actual cash flow in or out of a company but may still impact the financial statements.

Payments to Suppliers

Amounts of money paid by a company to its suppliers for goods or services received.

Payments to Employees

Refers to all forms of compensation, both monetary and in-kind, given to employees for their services.