Which of the Following Is NOT a Basic Policy Element

question 190

Multiple Choice

Which of the following is NOT a basic policy element of financial planning?

• A) The firm's needed investment in new fixed assets.
• B) The degree of financial leverage a firm chooses to employ.
• C) The amount of cash the firm thinks is necessary and appropriate to pay shareholders.
• D) The level of sales growth the market will provide in future years.
• E) The amount of liquidity and working capital the firm needs on an ongoing basis.

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Definitions:

Logical Strength

The degree to which the premises of an argument support its conclusion, ranging from absolute certainty to varying levels of probability.

Deductive

Pertains to a logical process in which a conclusion follows necessarily from the stated premises, implying the conclusion is a direct consequence of the premises.

Inductive

A reasoning method that makes broad generalizations from specific observations.

Public Performances

Events where performers present one or more acts of entertainment to an audience in a public space.