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

question 2

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:

Negative Ideas

Concepts or thoughts that are undesirable, pessimistic, or detrimental in nature, often presenting challenges in communication and problem-solving.

Fog Index

A readability test designed to estimate the years of formal education needed to understand a piece of text on the first reading, highlighting the complexity of the language used.

Flesch-Kincaid Grade Level

A readability test designed to indicate how difficult a passage in English is to understand, based on the grade level of education required to comprehend it.

Readability Index

A numeric score indicating how easy or difficult a text is to read, usually determined by factors like sentence length and word complexity.