The Contribution of Equipment by a Stockholder in Exchange for Common

question 33

Multiple Choice

The contribution of equipment by a stockholder in exchange for common stock is an example of ________.

• A) investing activity
• B) financing activity
• C) operating activity
• D) non-cash investing and financing activity

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Definitions:

Make-Or-Buy Decision

The choice between producing a component or a service and purchasing it from an outside source.

Externally

Refers to actions or processes that occur outside a system or entity.

Supply-Chain Strategy

The planning and management of all activities involved in sourcing, procurement, conversion, and logistics to maximize customer value and achieve a sustainable competitive advantage.

Low Cost Strategy

A competitive business approach focusing on achieving the lowest operational costs and, consequently, offering products or services at lower prices than competitors.