Which of the Following Is Correct When a Firm's Pro

question 33

Multiple Choice

Which of the following is correct when a firm's pro forma statements project a net income of $5,000 and an external financing requirement of $2,000?

• A) Dividends cannot exceed $3,000.
• B) Total assets cannot grow by more than $3,000.
• C) Retained earnings cannot grow by more than $5,000.
• D) The internal growth rate is 60%.

Comprehend the processes and conditions under which a contract can be rescinded.

Differentiate between concealment, nondisclosure, and misrepresentation in contract law.

Recognize the legal implications of scienter in the context of misrepresentation.

Identify the conditions under which ratification affects the right to rescind a contract.

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Definitions:

Video Display Terminals

Devices that display images generated by computers or other electronic devices, such as monitors.

Severance Pay

Compensation granted to an employee upon termination of employment, often based on length of service.

Reasonable Notice

Adequate time or notification given in advance as required by law or contract, prior to taking an action.

Discretionary Bonuses

Additional pay awarded to employees at the employer's discretion, typically based on performance, profitability, or as a reward for exceptional work.