Which of the Following Would Be Considered a Cash Inflow

question 5

Multiple Choice

Which of the following would be considered a cash inflow or outflow from investing activities?

• A) Purchase of shares in another company
• B) Payment of an overdue creditors account
• C) Interim dividend declared and paid
• D) Loan interest paid

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Definitions:

Maximization

The process of finding the highest possible level of a particular variable, such as profit, efficiency, or utility, under given constraints.

Large Corporations

Businesses that operate on a large scale, often with extensive operations, significant revenues, and a large number of employees.

C-type Corporations

Standard business corporations subject to corporate income tax, distinguished by their taxation at both the corporate and shareholder levels when dividends are distributed.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.