Essay
For each of the following, identify whether they are part of an entity's business operations, investments or financing.
1.The entity is a guarantor for a subsidiary's bank loan.
2.The entity is planning a takeover of a smaller company.
3.The entity recently loaned money to one of its management.
4.The entity recently began using derivatives.
5.The employee union negotiated a 5% pay rise on behalf of its members.
6.Credit policy has been increased from 30 days to 60 days due.
7.The entity is planning to upgrade their manufacturing plant.
8.The bank has imposed a debt covenant on the entity.
9.The entity recently sold of shares in a utilities company.
10. The entity has introduced a pricing policy of cost + 20%
Correct Answer:

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1.Financing.
2.Investments.
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Correct Answer:
Verified
2.Investments.
3....
View Answer
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