An Example of an Investing Activity Is

question 34

Multiple Choice

An example of an investing activity is:

• A)Paying wages of employees.
• B)Dividends paid by the company.
• C)Purchase of land.
• D)Selling inventory.
• E)Contributions from stockholders.

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Definitions:

Own Stock

Refers to the shares a company holds in its own treasury, often bought back from investors.

Corporation

A legal entity recognized by law as separate from its owners, providing them with limited liability and the ability to raise capital through the sale of shares.

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the company's stock and potentially having a claim on part of its assets and earnings.