Which of the Following Might Indicate the Correct Choice of a Plug

question 14

Multiple Choice

Which of the following might indicate the correct choice of a plug figure if a financial plan shows sources of funds to be $100,000 and uses of funds to be $90,000?

• A) External debt must increase by $10,000.
• B) Dividend payments must decrease by $10,000.
• C) Cash balances must increase by $10,000.
• D) The capital budget must decrease by $10,000.

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Definitions:

Corporate Structure

The organizational framework of a company, detailing the roles, responsibilities, and hierarchy within the organization.

Management

the process of directing, controlling, and coordinating the operations and resources of an organization or project.

Closely Held Corporations

Corporations where a small group of shareholders control the majority of the shares, often involving family ownership or a tight-knit group of investors.

Alien Corporations

Alien Corporations are companies that are incorporated in a foreign country relative to the jurisdiction where they are doing business.