In order to be successful, a company needs:
A)net income.
B)strong cash flow.
C)strong investing activities.
D)both net income and a strong cash flow.

Question

Quizplus · Accepted Answer

A company needs both net income and a strong cash flow to be successful. Net income is the profit a company earns after deducting all of its expenses from its revenues, while strong cash flow ensures that the company has enough cash to cover its operating expenses, pay off debts, and reinvest in the business. Strong investing activities are also important, but they are not as essential as net income and cash flow.

In Order to Be Successful, a Company Needs