Final answer:
Residual cash flow is the remaining profit after a company pays its expenses, taxes, and creditor obligations, which can be reinvested or distributed to shareholders.
Step-by-step explanation:
The cash remaining with the firm after paying its operating expenses, making payments to creditors, and taxes is called residual cash flow. This refers to the money that is left over after all the necessary expenses have been deducted. It represents the firm's ability to generate surplus cash that can be used for various purposes such as reinvestment or distribution to shareholders.
The cash remaining with the firm after paying its operating expenses, making payments to creditors, and taxes is referred to as residual cash flow. This cash flow represents what is left from revenues after all operating costs, interest, taxes, and dividends have been paid. In essence, it's the profit that remains for the company to reinvest back into business operations or distributions to shareholders.