Explain Why Cash Flow from Assets Must Be Positive Over

question 81

Essay

Explain why cash flow from assets must be positive over the long-term if a firm is to remain financially solvent.

---

Definitions:

Remainder

The part of an estate that is left after all other bequests and debts have been satisfied.

Fee Simple

The most comprehensive ownership interest in real property, allowing the owner nearly unlimited control over the land.

Life Estate

A legal arrangement where an individual has the right to occupy, use, or benefit from a property during their lifetime, after which the property reverts to another designated person or the estate.

Retain

To keep possession of or continue to hold or employ someone or something.