Which of the Following Is NOT a Basic Policy Element

question 197

Multiple Choice

Which of the following is NOT a basic policy element of financial planning?

• A) The firm's needed investment in new fixed assets.
• B) The degree of financial leverage a firm chooses to employ.
• C) The amount of cash the firm thinks is necessary and appropriate to pay shareholders.
• D) The level of sales growth the market will provide in future years.
• E) The amount of liquidity and working capital the firm needs on an ongoing basis.

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Definitions:

Absolute Difference

A measure of the total amount of difference between two quantities or numbers.

Weber Fraction

A principle in psychophysics quantifying the perception of change in a given stimulus relative to its initial level, often used in detecting differences in intensity.

Grapheme-colour Synesthesia

A form of synesthesia in which an individual's perception of numbers and letters is automatically and involuntarily associated with colors.

Colour Blindness

A condition where a person is unable to distinguish certain shades of color, due to a deficiency in the eyes' color-detecting molecules.