A Firm Has $1 Million in Current Sales Volume and an Internal

question 40

Multiple Choice

A firm has $1 million in current sales volume and an internal growth rate of 15%.If sales are expected to increase by $100,000, then:

• A)The firm's forecast will not be met
• B)Dividends will have to be reduced
• C)Retained earnings will increase by $50,000
• D)External funding will not be required

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Definitions:

Industry

The collection of businesses and activities involved in the manufacturing, production, or provision of goods and services in a particular sector.

Firm(s)

Businesses or corporations established to perform economic activities, such as producing goods or offering services to consumers.

Dango

A Japanese term referring to informal gatherings or consortia where companies collude, often used in the context of bid-rigging.

Covert Collusion

A secret agreement between companies to engage in practices like price-fixing or market sharing, which are typically illegal and aim to reduce competition.