Skyla and Terry Want to Form and Do Business as Unbound

question 9

Multiple Choice

Skyla and Terry want to form and do business as Unbound Games Corporation.Most statutes governing the formation and use of corporations are guided by

• A)city or county corporate codes.
• B)the Entrepreneur's Corporate Handbook.
• C)the federal Administrative Procedure Act.
• D)the Revised Model Business Corporation Act.

---

Definitions:

Operating Activities

Activities that relate directly to the primary revenue-producing operations of an organization, such as sales and service delivery.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.

Operating Activities

Activities that relate directly to the primary operations of the company, such as production, distribution, marketing, and selling of goods and services.

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operations.