How Much Is Required in External Financing If First-Stage Pro

question 96

Multiple Choice

How much is required in external financing if first-stage pro forma statements indicate $1 million in net income,$300,000 in dividends,and a $900,000 increase in total assets?

• A) $200,000
• B) $500,000
• C) $600,000
• D) No external financing is required.

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Definitions:

LaPiere

Refers to a classic study by sociologist Richard LaPiere in the early 20th century that highlighted the discrepancy between attitudes and behaviors, specifically regarding prejudice.

Attitude-Behavior Consistency

Refers to the extent to which individuals’ attitudes (beliefs and feelings) predict their behavior.

Self-Presentation

The process by which individuals attempt to control the impressions others form of them, often through the manipulation of personal information or behavior.

Innate-Rooted

Describes traits, behaviors, or responses that are hard-wired into an organism's biology, present from birth rather than learned through experience.