Free Cash Flow Is the Net Income Forecasted to Be

question 25

True/False

Free cash flow is the net income forecasted to be available to the venture's owners over time.

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Definitions:

Profit-Sharing Plan

A company program that gives employees a share in the profits, typically in the form of bonuses or stock options.

Annual Profits

This term refers to the total revenue from all sources within the year minus the total expenses, costs, and taxes needed to sustain the business.

Executives

Individuals who are in charge of managing and making key decisions within an organization.

Supervisors

Individuals in charge of overseeing and directing the work of others, typically in a workplace setting.