Macroeconomic conditions that can give rise to affect a firm's cash flow include:
A)economic growth and inflation.
B)political unrest and recession.
C)economic growth and political unrest.
D)competition and interest rates.

Question

Quizplus · Accepted Answer

Economic growth can lead to increased demand for a firm's products or services, resulting in more cash inflows. However, inflation can increase costs for the firm and decrease the purchasing power of its customers, leading to decreased cash inflows. Therefore, it is important for firms to monitor macroeconomic conditions and adjust their strategies accordingly. Political unrest and recession (B) can also affect a firm's cash flow, but they are not as directly linked to macroeconomic conditions as economic growth and inflation. Competition and interest rates (D) can affect a firm's profitability and financing decisions, but they may not necessarily impact its cash flow directly.

Macroeconomic Conditions That Can Give Rise to Affect a Firm's