Nathan Works as a Materials Scientist for a Carpet Manufacturer

question 116

Multiple Choice

Nathan works as a materials scientist for a carpet manufacturer. He has developed a material that does not work well in carpeting, but could have applications in hard flooring or other construction products. Nathan has been made the team lead for a group of scientists tasked with determining some marketable uses for the new material. His group would be referred to as

• A) A spin-off.
• B) A skunkworks.
• C) An example of bootlegging.
• D) An example of horse trading.
• E) A sponsorship.

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Definitions:

Financing Activities

Transactions and events involving changes in equity and debt in the financial structure of a company, such as issuing shares or taking loans.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders’ equity of a company at two or more different points in time, used to analyze trends in financial position.

Cash Dividends

Cash dividends are payments made by a corporation to its shareholder members. It is the share of profits distributed in the form of cash.

Operating Activities

Activities related to the day-to-day business operations, such as selling products or services, which generate most of a company's cash flow.