For a proposed new business, a financial analysis focuses exclusively on its ability to generate positive cash flow in the shortest time possible.

Question

Quizplus · Accepted Answer

A financial analysis that focuses exclusively on the ability of a new business to generate positive cash flow in the shortest time possible is commonly known as a cash flow analysis. This type of analysis is typically done to evaluate the financial feasibility of the proposed business and to assess the risk involved in investing in the business. It is important to evaluate the ability of a new business to generate positive cash flow since cash flow is critical in the early stages of a business when it is making a start. Therefore, the proposed statement is true.

For a Proposed New Business, a Financial Analysis Focuses Exclusively