The Additional Funds Needed by the Firm Can Be Calculated

question 18

Multiple Choice

The additional funds needed by the firm can be calculated by assuming which of the following?

• A) The firm's additional sales will grow proportionately as assets are purchased.
• B) The firm's additional capital needed will grow proportionately with projected changes in sales.
• C) The firm's balance sheet will grow proportionately with projected changes in sales.
• D) The firm's additional sales will grow proportionately as capital is brought on to the balance sheet.

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Definitions:

Telephone Solicitations

The practice of contacting individuals via telephone to offer goods, services, or solicit donations.

Federal Trade Commission

A U.S. federal agency responsible for consumer protection and the prevention of anti-competitive business practices.

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A type of loan where the borrower receives a fixed amount of money upfront and agrees to pay it back, along with any interest and fees, over a specified period.