False
While a profitable business is generally expected to generate positive cash flow, it is not always the case. Profitability is determined by the difference between revenues and expenses, which may not directly correspond to cash flow. Cash flow takes into account the timing of cash inflows and outflows, including factors such as accounts receivable, accounts payable, inventory, and investment in assets. It is possible for a business to be profitable but experience negative cash flow due to various factors such as high levels of accounts receivable, significant upfront investments, or delayed payments from customers.