All Businesses Are Involved in Three Types of Activity-Financing, Investing

Multiple Choice

All businesses are involved in three types of activity-financing, investing, and operating. For example, the founder of Tootsie Roll needed financing to start and grow his business. This may have come from either personal savings or outside sources. The cash obtained was then invested in the equipment necessary to run the business, such as mixing equipment and delivery vehicles. Once this equipment was in place, the founder could begin the operating activities of making and selling candy. Paul D. Kimmel, et al., Financial Accounting, 3^rd edition

A) Argument; conclusion: The cash obtained ... delivery vehicles.
B) Argument; conclusion: Once this equipment was in place ... selling candy.
C) Argument; conclusion: The founder of Tootsie Roll ... grow his business.
D) Argument; conclusion: All businesses are involved ... and operating.
E) Nonargument.