Question

Based on the lecture, which of the following cash flow activities usually generates positive cash flow for start-up companies (i.e., companies that recently began operations)? Select all that apply.

• Cash from operating activities

• Cash from investing activities

• Cash from financing activities

• None of the above activities usually generate positive cash flows for start-up companies

Answer 1

Ans:

For a recently begin company cash flow from financing activities usually generate positive cash. Cash from financing activities are the cash which is generated from capital introduce or debt financing. The main reason is businesses introduces capital or borrow large funds on the beginning of the business to start its business activities. As a result cash is increased to start the business.

So correct answer is Option C. Cash from financing activities.

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