In the long-run, it is most important for a business to generate an inflow of cash from its:
A) Operating activities.
B) Stockholders.
C) Investing activities.
D) Creditors.

Question

Quizplus · Accepted Answer

Operating activities refer to the core revenue-generating activities of a business, such as sales and services. It is crucial for a business to generate cash inflow from its operating activities to sustain its operations and invest in growth opportunities. Stockholders, creditors, and investing activities may also contribute to cash inflow, but they are not as essential as generating cash from operating activities in the long run.

In the Long-Run, It Is Most Important for a Business