Examlex
Please define the following key terms.
-James Watt and the steam engine
External Financing Needed
The amount of funding that a company must seek from external sources to finance its planned activities or investments, beyond what it can generate internally.
Capital Intensity Ratio
A measure of how much capital is used in relation to labor in the production process of a company.
Return on Assets (ROA)
A profitability ratio calculated by dividing net income by total assets, indicating how efficiently a company is using its assets to generate profit.
Percentage of Sales Approach
A method for forecasting financial needs based on the proportion of sales expected in the future.
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