One Aspect of the Global Challenge Faced by U

question 60

True/False

One aspect of the global challenge faced by U.S. business involves the complications of having to deal with two or more monetary systems.

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Definitions:

External Financing Need

The requirement for funds that a company must fulfill through external sources, like equity or debt, to finance its operations beyond what it can fund through its internal cash flow.

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its fixed costs.

Capital Intensity Ratio

A financial metric that measures the amount of capital needed per unit of output or the capital required to generate a dollar of revenue.

Operating Capacity

The maximum output that a company can produce under normal conditions.