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.

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Definitions:

Unethical Negotiating Behaviour

Practices in negotiation that are dishonest, unfair, or violate moral principles.

Long-Run Losses

Financial deficits that a business incurs over an extended period, often leading to strategic reassessment or restructuring.

Seeking Revenge

The act of attempting to harm or penalize someone in response to a wrongdoing or injury they are perceived to have caused.

Substance Goals

Objectives focused on the essence or core content of a task, project, or mission, rather than on external attributes or rewards.