Final answer:
The correct answer is (c) Cash flow analysis, which ensures a positive net present value from future cash inflows and outflows to increase the wealth of the firm's owners.
Step-by-step explanation:
The essence of the concept in question is determining whether a proposed investment or project will generate positive wealth for the owners of the firm once it is in place. The correct answer to this is c) Cash flow analysis. This involves assessing the future cash inflows and outflows from the investment to ensure that it will yield a positive net present value (NPV) and thereby increase the owners' wealth.
Firms often rely on different sources of financial capital to fund such investments, including obtaining funds from early-stage investors, reinvesting profits, securing loans through banks or bonds, and selling stock.