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The More Variable the Firm's Cash Flows from Operating Activities

Question 71

Multiple Choice

The more variable the firm's cash flows from operating activities, the more risk that the firm will not have sufficient cash to meet the required payments.Failure to meet these obligations can result in


A) default.
B) creditor intervention in the management of the firm.
C) regulatory intervention in the management of the firm.
D) bankruptcy.
E) All of these answer choices are correct.

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