Buying the Assets to Start Up a Business Is Classed

question 48

Multiple Choice

Buying the assets to start up a business is classed as which activity in the statement of cash flows?

• A)Operating
• B)Investing
• C)Financing
• D)Non-cash

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Definitions:

Controlling Shareholders

Individuals or entities that own a majority of a corporation's shares, giving them significant influence over its operations.

Close Corporation

A corporation with few shareholders generally having a close personal relationship to each other and participating in the management of the business.

Surplus Revenues

Funds that exceed the expected or required amounts, often discussed in the context of governmental or organizational budgets.

Not-for-Profit Corporations

Organizations that operate for purposes other than making a profit, often focused on charitable, educational, or social missions.