Which of the Following Are Determinants of a Firm's Sustainable

question 72

Multiple Choice

Which of the following are determinants of a firm's sustainable rate of growth? I. Amount of sales generated from each dollar invested in assets
II) Amount of debt per dollar of equity
III) Amount of current assets per dollar of current liabilities
IV) Percent of net income distributed as dividends

• A) I and III only
• B) II and IV only
• C) I, II, and IV only
• D) II, III, and IV only
• E) I, II, III, and IV

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Definitions:

Transferable

The characteristic of an asset or a legal right that allows it to be legally transferred or assigned from one party to another.

Warrants

Legal documents issued by a court or government authority that give law enforcement the power to perform certain actions, such as arrests or searches; also refers to financial instruments granting the right to purchase stock at a specified price.

De Facto Corporation

A business entity that operates like a corporation without formal incorporation status, but is treated as a corporation by law under certain conditions.

Incorporation Statute

Laws and regulations governing the process of establishing a corporation and outlining its legal status and structure.