Question

If a firm has negative operating cash flow, negative investing cash flow, and positive financing cash...

If a firm has negative operating cash flow, negative investing cash flow, and positive financing cash flow, which of the following best describes the life stage of this firm?

a mature firm.
a declining firm.
a bankrupt firm.
a young startup.
none of the above.
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Answer #1

If a firm has negative operating cash flow, negative investing cash flow, and positive financing cash flow

The firm is a young startup.

A young startup gets a lot of financing that's why has positive cash flow from financing activities, Invests in cash and runs in losses for establishing itself, that's why has negative operating and investing cash flows.

All other options would not generate positive financing cash flow

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