Which One of the Following Statements Is Correct Concerning the Internal

question 3

Multiple Choice

Which one of the following statements is correct concerning the internal growth rate?

• A) It is maximized when the payout ratio equals zero.
• B) It is maximized when the plowback ratio equals zero.
• C) It cannot be less than the sustainable growth rate.
• D) It decreases as total assets decrease.

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Definitions:

Disability Insurance

A type of insurance that provides income in the event a worker is unable to perform their work and earn money due to a disability.

Insurance Corporation

A company that offers insurance policies to individuals or other entities, covering a range of risks.

Employee Benefits Package

A collection of non-wage compensations provided to employees in addition to their normal wages or salaries.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of generating profits.