Use the Following Chart for Questions 84-88

question 53

Multiple Choice

Use the following chart for questions 84-88.

-Based on the chart above which company profile will be fit the cash flow pattern for scenario 2?

• A) Successful, but actively relocating using financing from operations with cash from creditors and shareholders.
• B) Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation.
• C) Successful, mature company that is downsizing and returning capital to shareholders and repaying debt.
• D) Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors.

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Definitions:

Share Repurchase

An initiative where a corporation repurchases its shares from the market, consequently diminishing the number of available shares and possibly raising the value of the shares still in circulation.

Own Company

A term referring to the possession or control of a company's shares, signifying ownership interest by shareholders or proprietors.

Marketplace

A platform or venue where goods, services, or financial instruments are traded between buyers and sellers.

Stock Dividend

is a dividend payment made in the form of additional shares rather than cash, potentially diluting the value of each share but not the total value.