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

question 9

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.

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Definitions:

Enforceable

A term describing a legal agreement or regulation that can be upheld or compelled by law.

Grade-A Quality

A classification that denotes the highest quality or standard in terms of product or item classification.

Original Offer

The initial proposal or price presented to potential buyers in a deal or transaction.

New Terms

Freshly introduced or revised conditions or stipulations in a contract or agreement.