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Which of the Following Is True for Free Cash Flow

question 14

Multiple Choice

Which of the following is true for free cash flow?
I. Free cash flow is easier to calculate than operating cash flow.
II. Estimated capital expenditures are subtracted from operating cash flow.
III. Estimated capital expenditures are added to operating cash flow.
IV. A negative free cash flow indicates that the company needs additional financing.


Definitions:

Ethics Planning

The process of developing strategies and policies that guide individuals or organizations in ethical decision-making and behavior.

Unethical Conduct

Behavior that does not conform to accepted standards of morality or integrity within a professional or organizational context.

Measure Progress

The process of assessing advancement or improvement towards achieving specific goals, objectives, or outcomes, often using quantitative or qualitative metrics.

Ethical Decisions

These are choices made based on moral principles and values, considering what is right and wrong in order to benefit society and minimize harm to individuals.

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