Small Businesses Are Prone to Failure

question 189

True/False

Small businesses are prone to failure.

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Definitions:

Financing Activities

Transactions and events where cash is obtained from or repaid to investors and creditors excluding suppliers, which affect a company's equity or borrowings.

Cash Payments

Outflows of cash to settle obligations or purchase goods and services, as documented in the cash flow statement.

Indirect Method

A approach used in cash flow statements to adjust net income for the effects of non-cash transactions and changes in working capital.

Operating Activities

Operating activities involve the primary revenue-generating activities of an organization, including production, sales, and delivery of the company’s product as well as administrative and general expenses.