Which of the Following Is Considered a Financing Activity

question 27

Multiple Choice

Which of the following is considered a financing activity?

• A) interest earned on short-term investments
• B) sale of inventory
• C) dividends received on investments in shares
• D) dividends paid to shareholders

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower marginal cost than others.

Production Possibilities

Various combinations of goods and services that can be produced within an economy given available resources and technology.

Economies Of Scale

The cost advantage achieved by producing goods in large quantities, hence reducing the cost per unit.