CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

A company's ability to succeed ultimately depends on its ability to ______

A. market a product effectively.
B. design superior products.
C. generate cash.
Correct Answer: C

A company needs cash to satisfy creditors and investors. Ultimately, a company must generate cash to succeed.

User Contributed Comments 7

User Comment
surob Cash is King!!!
ridone "generate cash" in this question effectively means "make a profit"
Bududeen no! profit and cash are different. a co. can be profitable but lacks cashflow.If ths is the case it will be in trouble. does credit crunch rings a bell!!!
sh21 way to go bududeen!
bantoo very important point raised by bududeen! there are many real estate companies which are profitable but lacks adequate liquidity.
kahh C.R.E.A.M - Cash Rules Everything Around Me
jonan203 Kahh, do you by any chance work at WuTang Financial?
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