The External Funds Needed (EFN) Equation Does Not Measure The

question 111

Multiple Choice

The External Funds Needed (EFN) equation does not measure the:

• A) additional asset requirements given a change in sales.
• B) additional total liabilities raised given the change in sales.
• C) rate of return to shareholders given the change in sales.
• D) net income expected to be earned given the change in sales.
• E) None of these.

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Definitions:

Satisficing Heuristic

A decision-making strategy that involves searching through the available alternatives until an acceptability threshold is met, rather than seeking the best possible solution.

Design Thinking

An iterative process in solving problems creatively and innovatively by understanding the human needs involved, re-framing the problem in human-centric ways, and adopting a hands-on approach in prototyping and testing.

Problem Solving

The process of identifying a problem, devising alternatives to solve it, and implementing a solution.

Business Intelligence

The use of data analysis tools and methodologies by organizations to make data-driven decisions.