In a healthy business, cash flow from operations will normally be:
A)negative.
B)less than the profit.
C)positive.
D)None of the above

Question

Quizplus · Accepted Answer

Cash flow from operations refers to the amount of cash generated from a company's primary business activities. In a healthy business, this cash flow should be positive, indicating that the company is generating more cash from its operations than it is using. This positive cash flow can be used to meet the company's working capital needs, pay dividends to shareholders, and invest in growth opportunities. Negative cash flow from operations may indicate that a company is not generating enough cash from its primary business activities and may be relying on financing or other sources of capital to sustain its operations. Therefore, option C is the correct choice.

In a Healthy Business, Cash Flow from Operations Will Normally