The two key external factors that impact the firm's cash flows are:
A)the overall economy and future financing needs.
B)the overall economy and the nature and structure of the industry.
C)the level of interest rates and working capital requirements.
D)working capital requirements and growth projections.

Question

Quizplus · Accepted Answer

The overall economy can impact the firm's cash flows by affecting the demand for the firm's products or services, the availability of credit, and overall consumer confidence. The nature and structure of the industry can also have a significant impact on a firm's cash flows, such as competitive pressures and regulatory changes. The other options may also be relevant but do not necessarily capture the two key external factors.

The Two Key External Factors That Impact the Firm's Cash