In the Context of Financial Tools, When a New Venture's

question 85

Multiple Choice

In the context of financial tools, when a new venture's net cash flow exceeds the initial investment plus the time value of the money invested, the venture is said to have achieved ________.

• A)positive equity
• B)entrepreneurial breakeven
• C)long-term sustainability
• D)positive float

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Definitions:

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often occurring when a company is insolvent and unable to meet its financial obligations.

Operating Cycle

An operating cycle is the average period of time it takes for a business to convert its inventory into cash proceeds from sales.

Receivables

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Raw Materials

Basic materials and substances used in the initial production or manufacturing of goods.