The Measure of Cash Flow Most Commonly Used in the Price-Cash

question 22

Multiple Choice

The measure of cash flow most commonly used in the price-cash flow ratio is:

• A) net income plus taxes.
• B) net income plus depreciation.
• C) net income plus extraordinary expenses.
• D) sales minus expenses including taxes.
• E) net income minus depreciation.

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Definitions:

Structurally Unemployed

Individuals who are unemployed due to a mismatch between their skills and the requirements of the current job market, often because of technological changes or shifts in the economy.

Seasonal Unemployment

Unemployment resulting from the seasonal pattern of work in certain industries, with workers regularly laid off during the slow season and rehired during the busy season.

Unemployment Rate

The unemployment rate is the percentage of the labor force that is jobless and actively seeking employment.

Natural Rate

The natural rate of unemployment is the level of unemployment consistent with a stable rate of inflation.