Which of the Following Cash Flow Patterns Do Rapidly Growing

question 56

Multiple Choice

Which of the following cash flow patterns do rapidly growing start-up companies follow?

• A) Cash reserves are being used to finance operating shortfalls and pay long-term creditors and investors
• B) Cash is being borrowed to cover cash shortages from operations and to purchase fixed assets
• C) Cash generated by operations is used to buy fixed assets and pay down debt
• D) Operating cash flow shortages are covered from the sale of fixed assets, borrowing, or stockholder contributions

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Definitions:

Antalgic

Related to or denoting a gait or posture adopted so as to avoid pain on weight-bearing structures, often due to injury.

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A pregnancy that involves increased health risks for the pregnant individual, the developing fetus, or both, due to various medical conditions or factors.

Bed Rest

A medical treatment in which a patient is advised to stay in bed for most of the time to aid the process of recovery.

Constipation

A common condition characterized by infrequent bowel movements and difficulty in passing stools.