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QUESTION 43 If a business has no liquid assets then negative cash flow from assets can not be sustained if the business does
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43. True. If the business does not have liquid asset and faces a negative cashflow, it would result in increase in liability of the company which may be in terms of an overdraft facility or use of outside capital to offset the negative cashflow.

44. False. Firstly a term sheet is a non-binding agreement, secondly it states basic terms of investment until the actual lawful contract isndrawn

45. True. Uber stated that the company's strength is its liquidity network effect which is controlled primarily by the drivers who serve the existing demand and lead to creation of demand.

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