Final answer:
A negative cash flow to owners indicates that a firm has incurred net losses and is facing financial distress.
Step-by-step explanation:
A negative cash flow to owners indicates that a firm has incurred net losses and is facing financial distress.
When a firm experiences negative cash flow, it means that the firm's expenses are exceeding its revenue. This can occur when the firm is incurring net losses, which means its expenses are greater than its income. This negative cash flow situation can often lead to financial distress, as the firm may struggle to meet its financial obligations and may require external financing to cover its expenses and stay afloat