The Primary Source of Cash Over the Life of a Business

question 101

Multiple Choice

The primary source of cash over the life of a business is ________.

• A)investing activities
• B)financing activities
• C)operating activities
• D)None of the above

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Definitions:

Tax Deductibility

Refers to the ability to subtract an expense from one's taxable income, thereby reducing the overall tax liability.

Equity Loans

These are loans where the borrowed amount is secured by the borrower's equity in their property, typically a home.

Household Debt

The total amount of money that all members of a household owe to outside parties, including mortgages, credit cards, and loans.

Adjustable Rate Mortgages

A type of mortgage loan where the interest rate can change over time based on an index or benchmark.