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If Any Firm with a Positive Net Worth Is Operating

question 8

True/False

If any firm with a positive net worth is operating its fixed assets at full capacity, if its dividend payout ratio is 100 percent, and if it wants to hold all financial ratios constant, then for any positive growth rate in sales, the firm will require external financing.


Definitions:

Individual Differences

Variation among individuals in terms of their psychological traits, abilities, and behaviors.

Impulsiveness

The inclination to behave impulsively, demonstrating actions that show minimal to no planning, contemplation, or regard for potential outcomes.

Social Psychology

A branch of psychology that deals with understanding how individual behavior, feelings, and thoughts are influenced by the actual, imagined, or implied presence of others.

Conform

To adjust one's behavior or thinking to coincide with a group standard.

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