Define and Discuss the Differences Between Operating, Investing, and Financing

question 23

Essay

Define and discuss the differences between operating, investing, and financing activities.

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Definitions:

Recurring Situations

Situations or events that happen repeatedly over time, often showing a pattern or cycle.

Automatic Responses

Reactions that occur with little to no conscious thought, often resulting from learned behaviors or innate instincts.

Programmed

Refers to something that is set up or prepared in advance according to a plan, often used in the context of computer programming or automated processes.

Nonprogrammed

Decisions or actions that are made in response to novel, unpredictable, or unique situations, requiring customized solutions.