All of the Following Are True of Negative Cash Flow

question 42

Multiple Choice

All of the following are true of negative cash flow from operations except:

• A) Negative cash flow from operations, if sustained, will spell bankruptcy.
• B) Negative cash flow from operations virtually always warrants investigation.
• C) Negative cash flow from operations in a single year is not necessarily a danger signal.
• D) Negative cash flow from operations: is normal for a profitable company.

---

Definitions:

Intuiting

involves understanding or knowing something without conscious reasoning, using instinctive feeling rather than factual analysis.

Dreams Nature

Pertains to the inherent characteristics, meanings, or functions of dreams, often analyzed in psychological or neuroscientific contexts.

Prospective

Relating to or effective in the future; likely to happen or to be concerned with what is to come.

Compensatory

Refers to mechanisms or behaviors aimed at offsetting deficiencies or disadvantages.