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.

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Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and able to buy at a specific price within a designated timeframe.

Natural Resources

Natural resources, including minerals, forests, water, and arable land, are elements found in the environment that can be exploited for financial benefit.

Price Change

An adjustment in the cost of a good or service.

Natural Resources

Raw materials and environmental assets that are found in nature and can be used for economic gain.