Typically,in a Start-Up Firm,salaries Are Not the Best Use of Cash.A

question 34

Multiple Choice

Typically,in a start-up firm,salaries are not the best use of cash.A guideline is for the owner to draw a salary that is about ________ below the market rate for a similar position.

• A)5-10 percent
• B)10-20 percent
• C)20-25 percent
• D)25-30 percent

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, reflected in a company's cash flow statement.

Financing Activities

This category in cash flow statements includes transactions related to raising capital and repaying investors, such as issuing stock or paying dividends.

Cash Flows

The inflow and outflow of cash and cash equivalents, representing the operating, investing, and financing activities of an entity over a period.

Indirect Method

In finance, it refers to a cash flow statement approach that adjusts net income for the effects of transactions that do not involve cash, to calculate net cash flow from operating activities.