In the Long-Run, It Is Most Important for a Business

question 94

Multiple Choice

In the long-run, it is most important for a business to generate an inflow of cash from its:

• A) Operating activities.
• B) Stockholders.
• C) Investing activities.
• D) Creditors.

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Definitions:

Divestiture

Corporate action of selling off subsidiary business units or interests.

Business Transaction

An exchange between two or more parties that involves the buying, selling, or trading of goods, services, or information.

Subsidiary Business

A company that is completely or partially owned and controlled by another company, known as the parent company.

Company Intranet

A private network used by a company to securely share corporate information and computing resources with its employees.