The Term "Additional Funds Needed (AFN)" Is Generally Defined as Follows

question 10

Multiple Choice

The term "additional funds needed (AFN) " is generally defined as follows:

• A) Funds that are obtained automatically from routine business transactions.
• B) Funds that a firm must raise externally from non-spontaneous sources,i.e. ,by borrowing or by selling new stock,to support operations.
• C) The amount of assets required per dollar of sales.
• D) The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
• E) A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.

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Definitions:

Commons Dilemma

A situation in which individuals' short-term selfish interests are at odds with long-term group benefits and social sustainability.

Prisoner's Dilemma

A situation in game theory where two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome for either of them.

Cost-of-living Raises

Adjustments in salary or wages to counteract inflation, ensuring the purchasing power of an employee's income remains steady.

Equity

Refers to fairness or justice in the way people are treated.