Which of These Statements Related to Free Cash Flow Is

question 49

Multiple Choice

Which of these statements related to free cash flow is correct?

• A) Free cash flow must be fully distributed to the firm's debtors and shareholders.
• B) Free cash flow must be positive for a firm to acquire new fixed assets.
• C) All, or part, of free cash flow can be used to increase a firm's cash reserves.
• D) When capital expenditures are positive, free cash flow will exceed the cash flow from operations.

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Definitions:

Medical Intervention

Any measure or action taken by healthcare professionals to improve health or alter the course of an illness.

Hospital Births

The process of giving birth in a hospital setting, often with medical professionals and amenities to ensure the safety and health of mother and child.

Sex-typed Expectations

The assumptions about how individuals should behave based on their gender, often reinforced by societal norms.

Cultural Expectations

The norms and values established by a society that guide the behavior and beliefs of its members.