When Using the Percent-Of-Sales Method in Forecasting Funds Needed,which of the Following

question 89

Multiple Choice

When using the percent-of-sales method in forecasting funds needed,which of the following is not true?

• A) As the dividend payout ratio decreases,the required new funds also decrease.
• B) Required new funds decrease as profits margins increase.
• C) Required new funds increase as accumulated amortization increases.
• D) As the tax rate increases,the required new funds increase.

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Definitions:

Decision Significance

The importance or impact that a decision has on an individual, organization, or situation.

Situational Force

External circumstances or pressures that influence an individual's behavior or decision-making processes.

Group Member Characteristics

The qualities, traits, and behaviors that define the individuals within a group and influence the group's dynamics and performance.

Achievement-Oriented Leadership

A leadership style focused on setting and achieving challenging goals, excellence, and demonstrating high performance.