A Firm Needs External Financing to Support Increases in Operations

question 5

Multiple Choice

A firm needs external financing to support increases in operations if:

• A) the firm is operating at full capacity.
• B) the firm is accounting for a very less amount of financing feedbacks.
• C) the firm has a large amount of spontaneously generated funds.
• D) the firm is having economies of scale.
• E) the firm is operating at the breakeven point.

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Definitions:

Federalist Party

An early American political party advocating for a strong federal government, and prominent in the late 18th to early 19th centuries.

Hartford Convention

An assembly of New England Federalists during the War of 1812, which discussed grievances against the U.S. government's war policies.

Popular Self-Government

The principle or practice where the people govern themselves directly or through elected representatives, forming the basis of democratic societies.

War of 1812

A conflict fought between the United States and the British Empire from 1812 to 1815, primarily over British restrictions on American trade and America's desire to expand its territory.