Business entities generally carry on:
A) Operating, investing, and financing activities
B) Operating activities, but only corporations engage in financing and investing activities
C) Investing and operating activities, but only corporations engage in financing activities
D) Either investing or financing activities, but not both

Question

Quizplus · Accepted Answer

All business entities carry on operating activities as they are necessary for the day-to-day operations of the business. Investing activities involve buying and selling long-term assets such as property, plant, and equipment or investments in securities. Financing activities involve raising capital to finance business operations and include activities such as issuing debt or equity. Both investing and financing activities are possible for all business entities, not only for corporations.

Business Entities Generally Carry On