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question 41

Multiple Choice

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Definitions:

Operating Capacity

The maximum amount of work that an organization can complete in a given period under normal circumstances.

Sales

The total amount of goods or services sold by a company during a specific period, often seen as a critical measure of business performance.

External Financing

External financing encompasses funds raised by a business from outside sources, such as loans, bonds, or equity financing, as opposed to internal sources like retained earnings.

Sales Capacity

The maximum volume or number of sales that a company can achieve within a specific period, considering its resources and constraints.