In a growing business that keeps its asset base up-to-date, total cash flow from investing activities will normally be:
A) negative.
B) more than cash flow from operations.
C) positive.
D) none of the above.

Question

Quizplus · Accepted Answer

In a growing business that is continually updating its asset base, total cash flow from investing activities is typically negative. This is because the company is likely spending more on acquiring new assets or upgrading existing ones than it is receiving from any sale of assets, reflecting an investment in the business's growth and operational capacity.

In a Growing Business That Keeps Its Asset Base Up-To-Date