Which of the Following Statements Is Correct for a Firm

question 43

Multiple Choice

Which of the following statements is correct for a firm that has a sustainable growth rate that exceeds its projected growth rate in assets?

• A) The projected growth in assets will be restricted.
• B) The internal growth rate will provide the remaining assets.
• C) The firm's ROE must increase.
• D) The debt-equity ratio will increase unless equity is issued.

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Definitions:

Open-Door Policy

A management approach where employees are encouraged to directly communicate their concerns, suggestions, or feedback to senior management without going through formal channels.

Arbitration

A method of dispute resolution involving a neutral third party who listens to both sides and then makes a binding decision.

Mediation

A form of conflict resolution where a neutral third party facilitates a dialogue between disputing parties to help them reach a mutually acceptable agreement.