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.

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Definitions:

Ethical Practice

The adherence to moral principles and standards in professional and personal actions, ensuring fairness, transparency, and integrity.

Public Sector

The part of the economy that is controlled by the government, encompassing public services and enterprises.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, not controlled by the state.

Bidding

The act of offering a specific price for something, especially in the context of an auction or public sale.