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:

Customer Education

Activities and resources provided by businesses to help customers better understand and use their products or services.

High-Learning

Typically a misspelling or misunderstanding, possibly meant to refer to "high-earning" or "high-learning" environments or individuals, for the latter, it means environments or endeavors focused on advanced learning objectives.

Product Life Cycles

The phases a product experiences from its creation and launch into the market, through its period of growth and peak maturity, to its ultimate decrease in relevance.

Sales Curves

Graphical representations that show the variation of sales over time, often used to analyze trends and forecast future sales.