Operating Activities

question 131

Multiple Choice

Operating activities:

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

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Definitions:

Required Return

The minimum gain necessary from an investment to justify its risk, similar to the return requirement but specific to individual investment criteria.

Assets

Assets of economic worth owned or managed by a person, business, or nation, anticipated to deliver benefits in the future.

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, function, or product), including overheads and administrative expenses.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to asset liquidation or reorganization.