The External Financing Need

question 20

Multiple Choice

The external financing need:

• A) will limit growth if unfunded.
• B) is unaffected by the dividend payout ratio.
• C) must be funded by long-term debt.
• D) ignores any changes in retained earnings.
• E) considers only the required increase in fixed assets.

---

Definitions:

Major Organic

Refers to the main or most abundant organic compound or element present in a mixture or reaction.

Organic Product

A term referring to a wide range of chemical compounds that emerge as the result of organic reactions.

Major Organic

Referring to the primary or most significant organic compound or pathway present in a particular chemical process or context.

Organic Product

Organic product refers to any compound containing carbon atoms that is produced as a result of an organic chemical reaction.