In the Context of Statement of Cash Flows, Cash Flows

question 146

Multiple Choice

In the context of statement of cash flows, cash flows from operating activities show the amount of cash that flowed into the company from:

• A) dividends.
• B) public grants.
• C) executive compensations.
• D) taxes on capital gains.

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Definitions:

Economies Of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units of production, reducing the cost per unit.

Diseconomies Of Scale

An increase in average total cost as output rises.

Monopoly

A market structure characterized by a single seller who has exclusive control over a product or service, with no close substitutes.

Natural Monopoly

A market situation where the most cost-efficient production level is achieved by a single firm due to high fixed or start-up costs, making it impractical for new entrants.