Which Factor Could Explain Why Dellva Energy Had a Negative

question 66

Multiple Choice

Which factor could explain why Dellva Energy had a negative net cash flow last year,even though the cash on its balance sheet increased?

• A)The company sold a new issue of bonds.
• B)The company made a large investment in new plant and equipment.
• C)The company paid a large dividend.
• D)The company had high amortization expenses.

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Definitions:

General Partnership

A type of business partnership where two or more partners share unlimited liability for the debts and obligations of the business.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, typically within a trustee-beneficiary, advisor-client, or director-shareholder relationship.

UPA

The Uniform Partnership Act, a law in the United States that provides a basic framework for the operation of partnerships.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal circumstances.