Final answer:
Increasing credit card purchases does not increase cash flow; it could lead to more debt. Meanwhile, working overtime, selling stock, or getting a second job can potentially raise an individual's cash flow. Businesses grow by reinvesting profits or by obtaining financial capital through loans or issuing stock. The correct answer is option C. selling stock.
Step-by-step explanation:
The question revolves around the concept of cash flow and which of the given options would not increase it. Cash flow, being the real measure of a business's profits, can be influenced by various activities, including working overtime, selling stock, and getting a second job, which could all potentially increase an individual's inflow of money. However, increasing credit card purchases does not augment cash flow; instead, it can lead to an increase in debt and potentially reduce net cash flow due to the requirement to pay back the borrowed amount with interest.
Reinvesting a portion of profits into the business is a typical way firms aim to boost cash flow. This can be achieved by improving facilities, hiring more labor, or acquiring improved technology, subsequently enabling more production and sales. When a company decides to either borrow financial capital or sell stock, it selects a method to finance its growth, each with distinct advantages and disadvantages. Issuing stock is an option to increase cash but it also means selling a portion of ownership and answering to new shareholders.
Issuing stock and reinvesting are both strategic decisions made by firms to fund significant long-term investments, like buying new machinery or starting research and development projects. Borrowing from banks or issuing bonds obligates the firm to scheduled payments, while selling stock involves sharing company control with investors. Either way, firms are deciding on a path to enhance future profits while balancing cost with control.