What happens to the cash position if a company's CAPEX spend increases? Option: Cash position increases, Cash position remains unchanged, Cash position decreases, Cash position becomes negative

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What happens to the cash position if a company's CAPEX spend increases?

Cash position increases

Cash position remains unchanged

Cash position decreases

Cash position becomes negative

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What is the term used for the money a company spends on business expansion activities?

Capital expenditure (CAPEX)

Working capital

Debt financing

Equity financing

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What does the term 'CAPEX Cycle' refer to in the context of a company's financial planning?

"The cyclical nature of stock market performance"

"The annual budgeting process for capital expenditure"

"The period during which a company experiences significant capital expenditure"

"The process of selling off old assets and acquiring new ones"

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What happens to the cash balance when a company's liabilities increase?

"The cash balance remains unchanged"

"The cash balance fluctuates unpredictably"

"The cash balance increases"

"The cash balance decreases"

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What does a negative Net Debt value indicate about a company's financial position?

The company is highly leveraged.

The company has more debt than cash.

The company has more cash than debt.

The company is in financial distress.

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How is the Free Cash Flow (FCF) of a company calculated?

Revenue - Expenses

Net Income + Depreciation

Cash from Operating Activities - Capital Expenditures

Gross Profit - Taxes