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Most Business Failures Are the Result of Poor Long-Term Financial

question 66

True/False

Most business failures are the result of poor long-term financial planning.


Definitions:

Net Cash

The amount of cash that is available after all debts, expenses, and operational costs have been deducted.

Financing Activity

Transactions and events that affect long-term liabilities and equity of an entity, such as issuing shares or obtaining long-term loans.

Total Equity

The total net worth of a company, calculated as total assets minus total liabilities.

Total Debt Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its total assets.

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