Which of the Following Is NOT a Likely Financing Policy

question 2

Multiple Choice

Which of the following is NOT a likely financing policy for a rapidly growing business?

• A) Adopt a modest dividend payout policy that enables the company to finance most of its growth externally.
• B) Borrow funds rather than limit growth, thereby limiting growth only as a last resort.
• C) Maintain a conservative leverage ratio to ensure continuous access to financial markets.
• D) If external financing is necessary, use debt to the point it does not affect financial flexibility.
• E) None of the above.

---

Definitions:

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts, focusing on perception and problem-solving.

Holistic Processing

Holistic processing is perceiving an object or scene as a whole rather than as a collection of individual components, often used in the context of recognizing faces or visual patterns.

Stimulus Integration

The process by which the brain combines information from different sensory modalities to create a coherent perception.

Attention

The process of selectively concentrating on one aspect of the environment while ignoring other things, crucial in processing information.