Which of the Following Represent Cash Outflows from a Corporation

question 9

Multiple Choice

Which of the following represent cash outflows from a corporation?
I.issuance of securities
II.payment of dividends
III.new loan proceeds
IV.payment of government taxes

• A)I and III only
• B)II and IV only
• C)I and IV only
• D)I, II, and IV only
• E)II, III, and IV only

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Definitions:

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

Personal Taxes

Taxes imposed on individuals or households based on their income, investments, or other personal activities.

Financial Distress

A situation where a company cannot meet or has difficulty paying off its financial obligations to its creditors.

Debt Financing

The method by which a firm raises capital through the sale of fixed income products, such as bonds or loans, committing to regular payments.