Identify a Long-Term Benefit of Developing Accurate Cash Flow Statements

question 62

Multiple Choice

Identify a long-term benefit of developing accurate cash flow statements.

• A)They assist a company in securing loans and credit lines in the future.
• B)They reduce a company's vulnerability to competition within its market niche.
• C)They improve the long-term profitability of a company.
• D)They provide a significant float that allows a company great financial flexibility.

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Definitions:

Motivate Employees

The process of inspiring and encouraging employees to achieve their best performance and commit to an organization's goals and success.

Long-Term Incentive

A reward system designed to improve employees' long-term performance, often through bonuses, stock options, or other financial rewards that vest over a period.

Stock Option

A benefit in which the employee is given the option to buy the company's stock at a discounted price.

Sales Commission

A form of remuneration given to sales employees, usually calculated as a percentage of the sales they have made, as an incentive to increase sales performance.