Management operates the productive capacity of the firm to generate earnings.Operating activities include the following except for:
A)Purchasing.
B)Research and development.
C)Marketing and administration.
D)Production.
E)Dividend payments.

Question

Quizplus · Accepted Answer

Dividend payments are not considered an operating activity as they involve the distribution of profits to shareholders and do not directly impact the productive capacity of the firm. Purchasing, research and development, marketing and administration, and production are all activities that are directly related to the operation and management of the firm's productive capacity.

Management Operates the Productive Capacity of the Firm to Generate