In a Wildly Successful First Year in Business That Started

question 11

Multiple Choice

In a wildly successful first year in business that started and ended with no required cash, your firm has operating income of $989,000, net income of $637,000, current assets of $900,000, current liabilities of $659,000, net capital expenditures were $690,000, and depreciation was $460,000. The firm has never financed itself with debt. What is your equity valuation cash flow?

• A) $648,000
• B) $900,000
• C) $2,028,000
• D) $166,000

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Definitions:

Competitive Advantage

The unique attributes or circumstances that enable a business to outperform its competitors.

Goal Attainment

The achievement of predefined objectives, often measured by specific criteria to assess success.

Turnover Rate

A metric that calculates the rate at which employees leave an organization and are replaced over a certain period, often used to assess the company's retention efforts.

Low-Cost Provider

A business strategy focusing on gaining competitive advantage by being the lowest cost producer in its industry or market segment, often by minimizing production costs.