Borders Closing 200 of Its 488 Superstores and Laying Off

question 96

Multiple Choice

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of

• A) divestiture.
• B) backward integration.
• C) liquidation.
• D) retrenchment.
• E) forward integration.

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Definitions:

Noncash Item

Transactions or items that appear on an income statement or in financial statements but do not affect cash flow, such as depreciation and amortization.

Financing Activities

Transactions related to raising capital and repaying investors, included within the cash flow statement.

Creditors

Individuals or institutions that lend money or extend credit, and to whom an entity owes money.

Long-Term Debt

Financial obligations of a business or an individual that are due more than one year in the future.