If a Firm with a Positive Net Worth Is Operating

question 31

True/False

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

Understand the consequences of not perfecting a security interest.

Be familiar with the concept of proceeds in secured transactions and their treatment.

Understand the various ways a security interest can attach to collateral and the significance of possession in perfection.

Understand the basic principles of secured transactions and the significance of security interests.

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Definitions:

Global Commodity Chain

A global chain of manufacturing and delivery activities through which a product travels before it arrives at the consumer.

Resistance Strategies

Methods or tactics employed by individuals or groups to oppose, challenge, or withstand social, political, or economic power structures.

Outsourcing

“Contracting out” or transferring to another country the labor that a company might otherwise have employed its own staff to perform; typically done for financial reasons.

Commodity Chains

The network of production and distribution processes through which a product passes until it reaches the consumer, often spanning multiple countries.