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Issues in construction company

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Leonetta Garcetti owns and manages a large construction company. This morning she is faced with the following issues.

1. The office manager just submitted his resignation and the search for a replacement must be organized.

2. A loan officer from the company's bank just phoned saying that the company's application for a $400,000 loan has been approved.

3. Bids from several vendors have been received regarding installation of a new computerized information system. One proposal must be selected.

4. Because the new bank loan has been approved, two short-term loans can be paid off.

5. Old office furniture is awaiting disposal.

6. A long-time customer is unhappy with the firm's latest architectural drawings for a new shopping center complex.

7. A new construction crane is being purchased.

8. An investor has approached Leonetta offering to purchase 20% of her company in exchange for cash.

9. The firm is considering the purchase of exclusive regional rights t a patented construction process.

10. One of the company's customers is behind on scheduled payments. The amounts are large and Leonetta must decide whether to suspend construction on the project involved.

11. Identify each of the issues above as involving a financing activity, an investing activity, or an operating activity.

 

Reference no: EM13256982

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