Describe the Factors That Should Be Considered for a Firm

question 4

Essay

Describe the factors that should be considered for a firm choosing between a greenfield venture and an acquisition.

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Definitions:

Net Cash

The amount of cash that is available after all debts and obligations have been settled, reflecting a company's liquidity.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, as part of a company's financial operations.

Cash Dividend

A distribution of a company's earnings to shareholders, decided by the board of directors, and paid in the form of cash.

Net Cash

The amount of cash available after accounting for cash inflows and outflows over a certain period.