A Firm Is Currently Operating at Full Capacity

question 5

Multiple Choice

A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:

• A) accounts payable.
• B) long-term debt.
• C) fixed assets.
• D) retained earnings.
• E) common stock.

Describe the characteristics, rights, and obligations of shareholders and benefit corporations.

Analyze the ethical considerations surrounding duty to rescue and exceptions to general principles.

Understand the impact and ethics of corporate contributions to political causes.

Comprehend how ethical preferences are formed and their influence on decision-making.

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Definitions:

Group

An ensemble of persons who engage in interaction, have alike features, and as a whole experience a sense of cohesion or identity.

Tensions

Psychological or emotional strain or stress that can arise from a variety of sources, often associated with conflicting demands or challenges.

Realistic Conflict Theory

A social psychological model that explains how conflict and hostility between groups arise from competition over resources or conflicting goals.

Competition

A situation in which individuals or groups vie with each other to achieve a goal that cannot be shared or that is desired individually.