Question

Michelle is investigating the financial statements of two companies. One company is in the maturity phase of the corporate life cycle, and the other company is in the decline phase. What financial activity might both companies be involved in?

Answer 1

Purchasing treasury stock

Step-by-step explanation:

Base on the scenario been described in the question, the type of financial activity both company are involved in is Purchasing treasury stock

Treasury stock purchase is often a form of reserved stock set aside to raise funds or pay for future investments. Companies can probably use this treasury stock to pay for an investment or acquiring of competing businesses.