An Example of an Investing Activity Is

question 90

Multiple Choice

An example of an investing activity is:

• A) Paying wages of employees.
• B) Withdrawals by the owner.
• C) Purchase of land.
• D) Selling inventory.
• E) Contribution from owner.

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Definitions:

Majority Rule

Majority rule is a decision-making principle whereby the choice of the greater number of participants in a group is accepted as the decision for the whole group.

One-Year Provision

A legal principle stating certain contracts must be in writing if they cannot be performed within one year of their making.

Main Purpose Doctrine

A legal principle that suggests a promise to pay another's debt is not subject to the statute of frauds if the guarantor's main purpose is to serve their own interests.

Suretyship Provision

A clause in a contract that involves a third party (the surety), who agrees to fulfill the obligations of a debtor to a creditor, should the debtor fail to fulfill their contractual obligations.