Which Type of Business Entity Is Likely to Experience a Value

question 11

Multiple Choice

Which type of business entity is likely to experience a value closest to 1 for their ratio of cash flow from operations to operating income?

• A) An entity enjoying growing market demand for their product,investing in new equipment depreciated by an accelerated method.
• B) An ageing entity with shrinking markets,and little R&D spending or new investment.
• C) An entity with growing markets that sees it receivables,inventories and payables increase significantly year on year.
• D) All three types of business entities.

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Definitions:

Positive Psychology Coaching

A coaching approach that focuses on leveraging strengths and fostering well-being to achieve personal and professional development.

Life Strategies Coaching

A guidance process aimed at helping individuals identify their goals, challenges, and potentials to develop plans for personal or professional growth.

Behavioral Retraining

A process of teaching new responses to replace undesirable behaviors in order to improve psychological well-being or enhance social skills.

Flexible/Rigid

A characteristic describing the adaptability and openness to change (flexible) versus resistance to change and strict adherence to rules without compromise (rigid).