Which of the Following Would Be Considered an Investing Activity

question 189

Multiple Choice

Which of the following would be considered an investing activity on the statement of cash flows?

• A)An issuance of stock
• B)A sale of equipment
• C)Payment of dividends
• D)Purchase of inventory

Analyze market demands and price changes to determine their effects on firm production and profitability.

Understand the long-term consequences of market changes on firm entry, exit, and production adjustments.

Determine the strategic response of firms to changes in market conditions based on marginal revenue and cost analysis.

Identify the conditions under which a firm operates at a loss, breaks even, or earns profits.

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Definitions:

Consolidation

The process of combining two or more entities into a single entity, often for the purpose of reducing costs and increasing efficiency.

Surviving Corporation

refers to the company that remains in existence after a merger or acquisition, absorbing the merged or acquired company.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of that company.

Compensation

Payment awarded to someone in exchange for loss, suffering, or for performed services.