If a Firm Doesn't Need to Use an IPO to Support

question 183

True/False

If a firm doesn't need to use an IPO to support its growth, it also doesn't need to migrate from visionary to professional leadership management practices.

---

Definitions:

Productive Capacity

The maximum output or production level that can be achieved with the available inputs and resources without stressing the production system.

Direct Method

A method for presenting cash flows related to operating activities, highlighting the main categories of gross cash inflows and outflows.

Operating Activities

Activities that are directly related to the operation of the business, such as sales, services, and administrative tasks, distinguishing them from investing and financing activities.

Economic Benefits

Inflows of assets or reductions in liabilities that result in an increase in equity, other than those relating to contributions from equity participants.