Free cash flow may be used for all of the following except to:
A)expand the business.
B)pay off debt.
C)build up the cash balance.
D)pay employees.

Question

Quizplus · Accepted Answer

Free cash flow is the cash that remains after all capital expenditures have been made and all necessary working capital has been invested in the business. It is typically used to pay for growth initiatives or to return cash to shareholders. While paying employees is important, it is not typically funded with free cash flow as it is a recurring cost that should be covered by the business's ongoing operating activities. Therefore, choice D is the best answer.

Free Cash Flow May Be Used for All of the Following