Free Cash Flow Is Equal to Cash Flow from Operating

question 83

True/False

Free cash flow is equal to cash flow from operating activities minus necessary capital expenditures and normal dividend payments.

---

Definitions:

Performance-Based Pay System

A compensation strategy that ties employee pay to their performance or achievements in the workplace.

Line Managers

Supervisors or managers who have direct responsibility over achieving organizational objectives and overseeing day-to-day activities and employees.

HR Department

The division within an organization responsible for managing functions related to human resources, such as hiring, training, and benefits.

Short-Term Bonuses

Financial incentives awarded to employees for achieving immediate or near-future targets or for exceptional performance over a short period.