Which of the Following Does Not Represent a Financing Activity

question 8

Multiple Choice

Which of the following does not represent a financing activity of a company?

• A)Organising the project funding for specific investments.
• B)Managing the cash flows and short-term investments of the company.
• C)Organising the funding of the general operations of the company.
• D)Undertaking the accounting and annual reporting activities of the company.

Comprehend the certainty effect and its impact on choices.

Recognize the role of reactance theory in behavior and decision-making.

Distinguish between status quo bias and omission bias in decision-making.

Analyze the characteristics and implications of being an entity theorist versus an incremental theorist.

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Definitions:

Dividend Payout Ratio

Dividend payout ratio is a financial metric that shows what proportion of a company's earnings are distributed to shareholders as dividends.

Market Price

The price at which an asset or service can be bought or sold in the market.

Dividends

Payments made to shareholders out of a corporation's earnings, typically on a regular basis.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential dividends.