A new, fast-growing company may typically have which of the following patterns of cash flows?

Question

Quizplus · Accepted Answer

A new company typically requires financing to fund its growth and may therefore have cash inflows from financing activities (such as issuing stock or obtaining loans) and cash outflows from investing activities (such as purchasing equipment or property). Additionally, the company may not yet be generating significant cash from operations, resulting in a negative CFO. Therefore, option B is the most likely pattern of cash flows for a fast-growing company.

A New, Fast-Growing Company May Typically Have Which of the Following