For a Non-Growth Firm,it Is Possible to Increase the Percentage

question 68

True/False

For a non-growth firm,it is possible to increase the percentage of sales that are made on credit sales and still keep accounts receivable at their current level,provided the firm can shorten the length of its collection period sufficiently.

---

Definitions:

Preemptive Rights

The rights that allow existing shareholders to purchase new shares in a company before the company offers them to the public, to maintain their proportionate ownership.

Standby Underwriting

An arrangement in which an underwriter agrees to buy any unsold shares after a public offering, ensuring the issuer sells all shares but only if necessary.

Common Shares

Type of equity security that represents ownership in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation.

Federal Statutes

Laws enacted by the United States Congress that apply nationally.