Having a Goal That Does Not Include Making a Profit

question 141

Multiple Choice

Having a goal that does not include making a profit can often explain why the unprofitable idea has not been implemented.These types of ideas may include:

• A) helping the poor.
• B) making great art.
• C) promoting social justice.
• D) All of these.

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Definitions:

Operating Cash Flow

The amount of cash generated by a company’s normal business operations, indicating whether a company is able to generate sufficient positive cash flow.

Top-Down Approach

An investment strategy that begins with analyzing macroeconomic factors, then drilling down to the industries and finally individual companies to make investment decisions.

Net Initial Investment

The total upfront cost required to initiate an investment, including all relevant expenses minus any cash inflows.

Sunk Costs

Denotes expenses that have already been incurred and cannot be recovered.