If Your Firm Is Currently Operating at Full Capacity and You

question 75

Multiple Choice

If your firm is currently operating at full capacity and you expect strong sales growth over the next few years, you should most likely:

• A) Expect that assets will not grow.
• B) Raise your dividend payout to accommodate the growth.
• C) Put off any further financial planning until sales growth moderates.
• D) Expect external financing will be needed.
• E) Expect the growth in retained earnings to outpace the growth in sales.

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Definitions:

Efficient Supply Chain

An optimized supply chain operation that minimizes costs and maximizes speed, efficiency, and flexibility in product delivery and fulfillment.

Responsive Supply Chain

A supply chain designed to quickly adapt to market changes and customer demands, emphasizing flexibility and speed.

Dell

A multinational computer technology company that develops, sells, repairs, and supports computers and related products and services.

Logistics Costs

Expenses associated with the planning, implementing, and controlling the efficient, effective forward and reverse flow and storage of goods, services, and related information.