A Company Has Positive Cash Flow from Investing and Financing

question 9

Multiple Choice

A company has positive cash flow from investing and financing activities,but negative cash flow from operating activities.The likely result is:

• A)investors may not buy the company's stock because the receipt of dividends is unlikely.
• B)investors will continue to buy stock since the company's growth prospects are good.
• C)Creditors will continue to lend money to the company.
• D)Creditors will demand immediate repayment of all outstanding debt.

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Definitions:

Problem-Solution Method

A strategy that identifies a problem and then proposes a solution, often used in sales, marketing, and product development.

Buyer

Describes an individual or entity that purchases goods or services.

Negotiator

A person skilled in discussing and arranging terms and agreements between parties with differing objectives.

Preparation

The act of making ready or being made ready for use or consideration.