Higher Cash Flow and Greater Risk

question 30

Multiple Choice

Higher cash flow and greater risk

• A) have no effect on share price.
• B) have an inverse effect on share price.
• C) adversely affect share price.
• D) have the same effect on share price.

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Definitions:

Leadership Capacity

The potential or ability for individuals to lead effectively, often developed through experience, training, and personal growth.

Variable Cost

Expenses that change in proportion with the level of production or sales volume, such as raw materials and direct labor costs.

Total Cost

The sum of all expenses incurred in producing a good or service, including both fixed and variable costs.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.