The External fiNancing Need Tends to ______ as the Projected

question 280

Multiple Choice

The external financing need tends to ______ as the projected growth rate in sales increases.

• A) decrease
• B) increase
• C) remain constant
• D) vary in an unpredictable manner
• E) increase and then decrease

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Definitions:

Dominant Firms

Refers to companies that have a major share of the market and significant influence over the prices and availability of products or services.

Start-Up Firms

Newly established businesses often characterized by innovation, scalability, and high growth potential.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Highly Profitable

Describing a business or activity generating significantly higher than average profits.