When an Anticipated Program or Project Involves Positive Net Benefits

question 21

Multiple Choice

When an anticipated program or project involves positive net benefits it is:

• A) Pareto satisfactory.
• B) Pareto optimal.
• C) a potential Pareto improvement.
• D) of benefit to at least one individual, and hurts no one.

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Definitions:

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.

Operating Activities

Activities that relate to the primary operations of the company, including cash flows from selling goods and services.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.

Net Income

Represents a company's earnings after all expenses, charges, and taxes have been subtracted from total revenue, reflecting the financial health of the company.