If a company is a start-up company, the expectation would be that there would be negative cash used by investing and operating activities and positive cash provided by financing activities.

Question

Quizplus · Accepted Answer

Start-up companies typically spend more cash than they generate in their early stages, leading to negative cash flows from operating and investing activities as they build their operations and invest in growth. They often rely on external financing (equity or debt) to fund these activities, resulting in positive cash flow from financing activities.

If a Company Is a Start-Up Company, the Expectation Would