Which of the Following Properly Links the Factors Affecting a Firm's

question 57

Short Answer

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in financing?
$\begin{array}{lll}& \underline {\text { Ability to generate cash}}&\underline {\text { Need to use cash}}\\a. &\text { Profitability of goods and services sold }& \text { Working capital requirements}\\b. &\text { Sales of existing plant assets }& \text { Plant capacity requirements}\\c. & \text { Borrowing capacity} & \text { Debt service requirements}\\d. & \text { Profitability of goods and services sold }& \text { Debt service requirements}\\\end{array}$

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Definitions:

Shareholders

Individuals or entities that own shares of stock in a corporation, giving them ownership interests and possibly rights to dividends and voting.

Management

Management involves the organization and coordination of activities to achieve defined objectives, typically within a business setting.

Corporate Executives

Senior managers or high-level administrators in charge of directing and overseeing a corporation's activities.

Internal Board

A governing body within an organization, typically made up of members from the organization, tasked with oversight and decision-making responsibilities.