Which Term Relates to the Cash Flow Which Results from a Firm's

question 25

Multiple Choice

Which term relates to the cash flow which results from a firm's ongoing,normal business activities?

• A)operating cash flow
• B)capital spending
• C)net working capital
• D)cash flow from assets
• E)cash flow to creditors

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Definitions:

Close Corporation

A corporation whose shares of stock and managerial control are closely held by fewer than 50 shareholders (often members of the same family) or by one person.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters.

No Par Value

Shares issued without a nominal or stated value per share, with the market price determined by demand.

Secretary of Commerce

The head of the U.S. Department of Commerce, responsible for promoting American businesses and trade.