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Which one of the following is a financing activity of a business?

a. Purchasing a manufacturing plant
b. Paying for purchases of inventory
c. Paying salaries
d. Issuing stock for cash

User Welbog
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1 Answer

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Final answer:

Issuing stock for cash is the financing activity among the options given as it involves raising capital by selling ownership stakes in the company to the public.

Step-by-step explanation:

The activity that is considered a financing activity of a business among the options provided is Issuing stock for cash . Financing activities involve transactions designed to fund a company, including debt, equity, and dividends. When a company issuse stock, it is selling ownership in the company to the public to raise capital, in contrast with operations like purchasing a plant or paying for inventory which are investing and operating activities respectively. Paying salaries is also considered an operating activity as it relates to the daily operations of the business.

User Merlino
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