Which of the Following Will Decrease the Additional Funds Needed

question 41

Multiple Choice

Which of the following will decrease the additional funds needed from external sources?

• A) The firm's profit margin decreases.
• B) The firm's retention ratio is decreased.
• C) The firm becomes less capital intensive.
• D) The firm reduces its usage of trade credit.

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Definitions:

Earmarks

Narrow, specially designated spending authorizations placed in broad legislation by senators and representatives for the purpose of providing benefits to firms and organizations within their constituencies. Earmarked projects are exempt from competitive bidding and normal evaluation procedures.

Authorized Expenditures

Expenditures that are officially approved or sanctioned by an authoritative body or individual, often within an organizational or governmental context.

Narrow Specifically

Focusing or specializing in a very specific or narrow area or topic.

Earmarks

Provisions within legislation that allocate funds for specific projects, often without proper review or competition.