An Effective Vision

question 51

Multiple Choice

An effective vision:

• A) provides a link between today and tomorrow.
• B) serves to motivate and energize employees.
• C) both provides a link between today and tomorrow and serves to motivate and energize employees.
• D) provides a snapshot of the present.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the company, reflected in the cash flow statement.

Free Cash Flow

Free cash flow represents the amount of cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.

Productive Capacity

The maximum output or production level that a facility, sector, or economy can sustain over a period.

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.