The Basic Relationship for Determining External Capital Required Is

question 10

Multiple Choice

The basic relationship for determining external capital required is

• A)External capital required = − operating cash flow + investment in net working capital.
• B)External capital required = − operating cash flow + investment in net working capital + investment in fixed assets.
• C)External capital required = − operating cash flow + investment in net working capital + investment in fixed assets + dividends.
• D)None of these answers are correct.

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Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs, playing a crucial role in breathing by contracting and relaxing to allow air in and out of the lungs.

Thoracic Cavity

The part of the body known as the chest cavity, which houses the lungs, heart, and other vital organs.

Vitamin D

A fat-soluble vitamin that is essential for maintaining the health of bones and teeth and supports the immune system, often obtained through sunlight exposure or dietary sources.