All Else the Same, the Level of External fiNancing Needed

question 32

Multiple Choice

All else the same, the level of external financing needed (EFN) increases with increases in the:

• A) Profit margin.
• B) Retention ratio.
• C) Accounts receivable turnover ratio.
• D) Capital intensity ratio.
• E) Fixed asset utilization ratio.

---

Definitions:

Political Factors

Elements related to government policies, political stability, and legislative changes that can impact an organization's operation and strategic decisions.

International Labour Organization

A United Nations agency that sets international labor standards and promotes rights at work.

Rights Of Workers

Refers to the legal and ethical entitlements of employees in the workplace, covering aspects such as fair pay, safe working conditions, and freedom from discrimination.

Specialized Agency

An organization focused on a specific sector or field, offering expert services or products tailored to its unique demands and challenges.