Because New Ventures Typically Are Small, They Usually Do Not

question 102

True/False

Because new ventures typically are small, they usually do not have high economies of scale relative to competitors.

---

Definitions:

Investing Activities

Investing activities are financial transactions involving the purchase and sale of long-term assets and other business investments.

Cash Outflow

A decrease in cash is called a cash outflow or a use of cash. When listing a total for a major section of the statement of cash flows, if cash has decreased, the figure is often described as “cash used” in operating activities (or in investing activities or financing activities).

Equity Securities

Financial assets representing ownership interest in an entity, such as stocks.

Statement of Cash Flows

A report detailing how alterations in balance sheet items and revenues influence the cash and cash equivalents, segmented into operations, investments, and funding activities.