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The Main Source of Cash for a Business Must Come

question 63

True/False

The main source of cash for a business must come from operating activities if it is to prosper in the future.


Definitions:

Traceable Fixed Expense

Costs that are constant and can be directly attributed to a particular department, project, or business segment.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, excluding taxes and interest.

Price Hike

An increase in the price of goods or services offered by a company.

Value-Based Pricing

A pricing strategy where the selling price of a product or service is based on the perceived value to the customer rather than the cost of production or market price.

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