Precision Pipe Inc

question 139

Multiple Choice

Precision Pipe Inc.'s stated purpose is to install plumbing. Precision Pipe contracts with Quality Contracting to pour a new building's foundation despite lacking the skill and license to do such work. This is most likely

• A)an ultra vires act.
• B)within the corporation's express powers.
• C)within the corporation's implied powers.
• D)allowable and proper as an act to profit corporate shareholders.

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Definitions:

Cost of Goods Sold

Costs directly linked to the creation of products sold by a firm, such as the expenses for materials and workforce.

Income from Operations

The profit generated from a company's regular, core business activities, excluding non-operating income and expenses.

Multiple-Step

An income statement format that separates operating revenues and expenses from non-operating activities, providing a detailed view of a company's financial performance.