The ________ of the firm dictates how cash flows and financial resources can be managed.
A)profitability
B)structure
C)employees
D)shareholder
E)stockholder

Question

Quizplus · Accepted Answer

The structure of the firm, including its legal and organizational structure, determines how cash flows and financial resources can be managed. For example, a publicly traded company has different regulations and reporting requirements than a privately held company, which affects how they manage their finances. Profitability, employees, and shareholders/stockholders can all have an impact on financial management, but they are not the determining factor.

The ________ of the Firm Dictates How Cash Flows and Financial