Question

Question 3
A company has the following cash flows:

Cash from operations (30)

Cash from investing activities (45)

Cash from financing activities 90

Which growth stage best describes this pattern of cash flows?


Decline



Fossilized



Early growth



Start-up



Mature


1 point
4.
Question 4
A compan

Answer 1

Based on the provided cash flows, the best description of the company's growth stage is **Early growth**.

Here's the reasoning:

- **Cash from operations**: -30 (indicating negative cash flow from operations, which is common in the early stages as companies invest heavily to build their business)
- **Cash from investing activities**: -45 (indicating cash is being spent on investments, also typical for companies in the early growth or startup stages)
- **Cash from financing activities**: +90 (indicating that the company is successfully raising funds, which is often a characteristic of early growth companies looking to scale).

Given the negative cash flow from operations and investing activities, combined with a strong positive cash flow from financing, this suggests the company is in a phase of aggressive growth after the initial startup stage, making it reasonable to classify it as **Early growth**.

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