Trading Industries Are Distinguished by

question 37

Multiple Choice

Trading industries are distinguished by

• A)the widespread practice of importing and exporting.
• B)the widespread practice of moving capital investments from one country to another.
• C)the tendency for employees to move from one country to another.
• D)all of the above.

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Definitions:

Net Cash Flows

The total amount of cash and cash-equivalents being transferred into and out of a business.

Operating Activities

Transactions and events that affect the net income, related to the core business operations of a company.

Cost of Goods Sold

Expenditures directly resulting from the manufacturing of a company’s products for sale, comprising materials and employee wages.

Merchandise Inventory

Items purchased by a company for the purpose of being sold to customers; considered a current asset on the balance sheet.