A Pro Forma Statement Indicates That Both Sales and Fixed

question 53

Multiple Choice

A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels.Given this,you can safely assume that the firm:

• A)is projected to grow at the internal rate of growth.
• B)is projected to grow at the sustainable rate of growth.
• C)currently has excess capacity.
• D)is currently operating at full capacity.
• E)retains all of its net income.

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Definitions:

As Soon As Possible

A phrase indicating urgency, requesting that a task or action be completed in the shortest amount of time reasonably achievable.

Law Of Contingent Reinforcement

This law states that the effectiveness of a reinforcement depends on how consistently and immediately it follows the desired behavior.

Desired Behaviour

Specific actions or reactions that an organization, system, or individual aims to evoke from others, often through reinforcement or incentives.

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards or positive outcomes for such behavior.