Which One of the Following Is a Use of Cash

question 95

Multiple Choice

Which one of the following is a use of cash?

• A)Selling goods from inventory
• B)Sale of a marketable security held by the firm
• C)Submitting taxes to the government
• D)Obtainment of a long-term loan
• E)Collection of a past-due accounts receivable

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Definitions:

Tying Contracts

Agreements where a seller conditions the sale of one product (the tying product) on the buyer's agreement to purchase a separate product (the tied product).

Horizontal Merger

A merger between firms in the same industry operating at the same level of the production process, often aimed at reducing competition and achieving economies of scale.

Conglomerate Merger

A type of merger where two or more companies operating in completely different industries join forces or come under the control of one company.

Vertical Merger

A merger between two companies that operate at different stages within the same industry supply chain, enhancing efficiency or reducing costs.