Which of the Following Is a Typical Characteristic of Microenterprises

question 9

Multiple Choice

Which of the following is a typical characteristic of microenterprises?

• A) Annual growth rate over 20%
• B) Require large amount of outside financial support
• C) Permit their owners to follow a desired pattern of living
• D) Constitute the bulk of the small businesses
• E) Usually have 5 or fewer employees

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Definitions:

Indirect Method

A cash flow statement methodology that adjusts net income for changes in non-cash transactions and working capital to calculate cash flow from operating activities.

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period.

Operating Activities

These activities involve the primary, day-to-day operations of a business, such as selling products, providing services, and incurring operating costs.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.