A "Cash Hog" Type of Business

question 92

Multiple Choice

A "cash hog" type of business

• A) is one that is losing money and requires cash infusions from its corporate parent to continue operations.
• B) is one that generates cash flows that are too small to fully fund its operations and growth.
• C) generates negative cash flows from internal operations and thus requires cash infusions from its corporate parent to report a profit.
• D) is a business growing so rapidly that it does not have the funds to cover its short- and long-term debt obligations.
• E) is one that has more current liabilities than current assets and faces a liquidity crisis due to declining sales revenues and declining profitability.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Censoring

The suppression or prohibition of any parts of books, films, news, etc. that are considered obscene, politically unacceptable, or a threat to security.

Relevant Information

Data or facts closely related to the subject at hand or of importance to the decision-making process.

Actor-Observer Effect

A tendency to attribute one's own actions to external causes while attributing other people's behaviors to their internal characteristics.