Positive cash flow from investing activities is typical of firms experiencing healthy growth.

Question

Quizplus · Accepted Answer

Positive cash flow from investing activities often indicates that a company is divesting assets rather than investing in new ones, which could be a sign of downsizing or selling off investments rather than healthy growth. Healthy growth is typically associated with investments in new assets, leading to negative cash flow from investing activities.

Positive Cash Flow from Investing Activities Is Typical of Firms