A Business Entity Is Generating Small Operating Losses Year After

Multiple Choice

A business entity is generating small operating losses year after year and has a large positive cash flow from operations year after year.

A) It is an impossible situation.
B) It is a business entity that provides little value added beyond providing an infrastructure (such as the provision of pipe lines or of rail tracks right-of-ways) and continuously invests in rapidly depreciable assets.
C) It is a business that is doomed.
D) It is an entity that cannot invest in any new assets.