Which of the Following Is an Internal Transaction

question 10

Multiple Choice

Which of the following is an internal transaction?

• A) Payment of dividends to shareholders
• B) Loan to a director
• C) Depreciation of equipment
• D) Purchase of machinery on credit

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Definitions:

Vested Interest

A personal stake or involvement in an undertaking or situation, where the individual stands to gain from its successful outcome.

Environmental Uncertainty

A lack of predictability or stability in the external conditions that can affect an organization's performance.

Resource Dependence

The dependency of organizations on environmental inputs, such as capital, raw materials, and human resources as well as outputs such as customers.

Environmental Uncertainty

The unpredictability that an organization faces due to external factors beyond its control, such as economic conditions or technological changes.