Operating Activities

question 186

Multiple Choice

Operating activities:

• A) Are also called strategic management.
• B) Are the means organizations use to pay for resources like land, buildings and equipment.
• C) Are also called asset management.
• D) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services.
• E) Involve using resources to research, develop, purchase, produce, distribute and market products and services.

Understand and apply the concept of the reward-to-volatility ratio.

Comprehend the principles of asset allocation between risky and risk-free assets.

Understand the implications of borrowing and lending rates on portfolio choice.

Recognize the utility theory basics and its application in investment decisions.

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Definitions:

Economic Citizenship

A concept related to how citizens engage with the economic system of their country, including the rights and responsibilities that come with this engagement.

Political Citizenship

The status of being a member of a state or nation, including the rights, duties, and privileges associated with that membership.

Absolute Deprivation

A condition characterized by the inability to meet basic needs for food, clothing, and shelter.

Social Rewards

Benefits such as recognition, respect, and appreciation that individuals receive from others as a result of socially valued actions or characteristics.