A Cash Hog Type of Business

Multiple Choice

A cash hog type of business

A) is one that is losing money and requires cash infusions from its corporate parent to continue operations.
B) generates cash flows that are too small to fully fund its operations and growth,and so must receive cash infusions from outside sources to cover working capital and investment requirements.
C) generates negative cash flows from internal operations and thus requires cash infusions from its corporate parent to report a profit.
D) is a business growing so rapidly that it does not have the funds to cover its short- and long-term debt obligations.
E) is one that has more current liabilities than current assets and faces a liquidity crisis due to declining sales revenues and declining profitability.