Making and Collecting Loans, Issuing and Paying Out on Insurance

question 62

True/False

Making and collecting loans, issuing and paying out on insurance contracts, and buying and selling debt or equity instruments of other companies are examples of financing activities.

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Definitions:

Authorized

The formal approval or sanction for an action or the maximum amount of capital stock that a company can issue as authorized by its corporate charter.

Treasury

A department of government or a corporate department responsible for managing all financial operations, including issuing money, managing government or corporate debt, and executing monetary policy.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the company.

Consideration Received

The value obtained in exchange for goods or services offered, often represented in monetary terms but can include other forms of value.