If a Firm Has a Negative Cash Flow from Assets

question 56

Multiple Choice

If a firm has a negative cash flow from assets every year for several years, the firm:

• A)may be continually increasing in size.
• B)must also have a negative cash flow from operations each year.
• C)is operating at a high level of efficiency.
• D)is repaying debt every year.
• E)has annual net losses.