Small Businesses Are Based Locally and Independently Managed

question 51

True/False

Small businesses are based locally and independently managed.

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Definitions:

External Financing Need

The additional funding required by a firm to finance its expansion or growth projects beyond what it can generate from internal operations.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its planned growth or investment activities, beyond what can be funded by retained earnings or internal operations.

Retains

Refers to the portion of earnings or profits that a company decides to keep rather than distribute to shareholders as dividends, often used for reinvestment.

Constant Ratio

A strategy involving maintaining a fixed percentage allocation among different asset classes.