What Is the Term for Activities That Are Considered Unnecessary

question 45

Multiple Choice

What is the term for activities that are considered unnecessary to staying in business?

• A)value-added activities
• B)non-value-added activities
• C)direct activities
• D)indirect activities

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Definitions:

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporate charter, which may differ significantly from the market value.

Paid-in Capital

The amount of money that a company receives from selling its shares directly to investors, not including the stock value on secondary markets.

Par Preferred Stock

A type of preferred stock with a nominal face value, which determines dividend payments and is prioritized over common stock in the event of liquidation.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.