Which One of the Following Will Reduce the Internal Growth

question 38

Multiple Choice

Which one of the following will reduce the internal growth rate,other things equal?

• A) A higher plowback ratio
• B) A higher debt-to-asset ratio
• C) A higher return on equity
• D) A higher return on assets

---

Definitions:

Accounts Receivable Balance

The sum of money that customers owe to a business for products or services they have received but have not yet paid for.

Quarterly Sales

The total revenue generated by a business during a specific quarter of the fiscal year.

Receivable Factoring

A financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in order to obtain immediate cash.

Line Of Credit

A flexible loan from a bank or financial institution that has a maximum limit, allowing the borrower to access funds as needed up to the credit limit.