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Basic Assumptions
Fundamental beliefs or principles that underlie the financial accounting system, including economic entity, monetary unit, time period, and going concern.
Internal Growth Rates
The maximum rate at which a company can expand using only internal financial resources without resorting to borrowing or seeking new equity investment.
External Financing Needs (EFN)
The amount of funding a business requires from external sources to finance its planned growth or expansion activities.
Negative EFN
External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.
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