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 the above

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Definitions:

Resistant

The quality of being opposed to or defending against something, such as change, disease, or certain materials and substances.

Ideas

Mental concepts or thoughts that represent a person's understanding or imagination, which can be the basis for creativity, problem-solving, and innovation.

Constructive

Describes feedback or criticism that is intended to be helpful and aimed at improving or building upon something.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.