What does the term 'sale of assets' refer to?

The term 'sale of assets' refers specifically to the process of transferring ownership of a physical or intangible asset in exchange for cash or other forms of consideration. This can include items such as equipment, real estate, or intellectual property. By selling these assets, a business can generate immediate cash flow, which can be crucial for covering expenses, investing in new opportunities, or addressing financial obligations. The transaction typically involves a documented agreement outlining the sale terms and the asset's value.

In contrast, the other options encompass different financial activities. An owner's investment in the business pertains to equity contributions made by the owner, which does not involve a sale but rather an infusion of capital. Retaining profits within the company refers to the decision to reinvest earnings rather than distributing them to owners or shareholders, focusing on growth rather than liquidation. Repaying borrowed money involves fulfilling a liability rather than generating cash through the sale of an asset, thus highlighting distinct financial actions unrelated to asset sales.