Which of the Following Properly Links the Factors Affecting a Firm's

question 57

Short Answer

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in financing?
$\begin{array}{lll}& \underline {\text { Ability to generate cash}}&\underline {\text { Need to use cash}}\\a. &\text { Profitability of goods and services sold }& \text { Working capital requirements}\\b. &\text { Sales of existing plant assets }& \text { Plant capacity requirements}\\c. & \text { Borrowing capacity} & \text { Debt service requirements}\\d. & \text { Profitability of goods and services sold }& \text { Debt service requirements}\\\end{array}$

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Definitions:

Institutional Investors

Entities such as pension funds, insurance companies, and mutual funds that make large-scale investments in securities and other financial assets.

Analysts on Wall Street

Professionals who research and analyze financial data and trends to give investment advice or recommendations to clients or their employing financial institution.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, typically considering economic, social, and environmental dimensions.

Sustainable Innovation

Innovations that are designed to meet present needs without compromising the ability of future generations to meet theirs, often with a focus on environmental and social considerations.