CFA Practice Question

There are 89 practice questions for this study session.

CFA Practice Question

A start-up company might be expected to have:

A. negative operating, investing and financing cash flows.
B. positive operating cash flow but negative investing and financing cash flows.
C. negative operating and investing cash flows but positive financing cash flows.
Correct Answer: C

The corporate life cycle and industry profile must be considered when analyzing cash flow. Operating and investment cash flows of a start-up should be funded by financing cash flows.

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