A Business Entity Is Generating Small Operating Losses Year After

question 10

Multiple Choice

A business entity is generating small operating losses year after year and has a large positive cash flow from operations year after year.

• A) It is an impossible situation.
• B) It is a business entity that provides little value added beyond providing an infrastructure (such as the provision of pipe lines or of rail tracks right-of-ways)and continuously invests in rapidly depreciable assets.
• C) It is a business that is doomed.
• D) It is an entity that cannot invest in any new assets.

---

Definitions:

Diagram

A simplified drawing or chart that shows the structure or explains the operation of something, often used in educational and technical contexts.

Arrows

Symbols used to indicate direction, represent logical relations, or signify movement from one position to another.

Independent Premise

An assertion in an argument that stands alone and does not require support from another premise to be understood or validated.

Argument

A connected series of statements intended to establish a proposition or persuade someone of a particular point of view.