Which of the Following Statements Is Correct for a Firm

question 43

Multiple Choice

Which of the following statements is correct for a firm that has a sustainable growth rate that exceeds its projected growth rate in assets?

• A) The projected growth in assets will be restricted.
• B) The internal growth rate will provide the remaining assets.
• C) The firm's ROE must increase.
• D) The debt-equity ratio will increase unless equity is issued.

Understand the stages and substages of Piaget's theory of sensorimotor development.

Describe the development of object permanence and its significance in cognitive development.

Differentiate between primary, secondary, and tertiary circular reactions and their role in learning.

Recognize the concept of deferred imitation and its implications for memory and learning.

---

Definitions:

Taxable Income

The amount of income that is subject to tax, after all allowable deductions, exemptions, and adjustments.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income, showing the percentage of income paid in taxes.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount (income or profits) increases, making it proportionately more taxing on higher earners.

Income Increases

Refers to a situation where an individual's or entity's earnings grow over a period, leading to higher financial resources.