Free Cash Flows Are

question 122

Multiple Choice

Free cash flows are:

• A) liquid financial assets for which investments in current businesses are no longer economically viable.
• B) liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.
• C) the profits resulting after a restructured firm has been sold.
• D) dividends that have been distributed to shareholders that are taxed as capital gains.

---

Definitions:

Technically Feasible

Refers to a project or proposal that is possible and practical to achieve with the current level of technology.

Least Cost

A principle or strategy focused on achieving a particular objective at the minimum possible cost.

Short Run

A period in economics where at least one factor of production is fixed, and firms can only partially adjust to changes in market demand.

Input

Resources such as labor, materials, and capital used in the production of goods and services.