When Firms Retain Cash,they Are Generating Funds Internally Thereby Decreasing

question 66

True/False

When firms retain cash,they are generating funds internally thereby decreasing the amount of external funds needed.

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Definitions:

Capital Goods

Physical assets that are used in the production process to manufacture goods and services, including buildings, machinery, and equipment.

Future Value

The value of an investment or asset at a specified future date based on assumed rates of growth or interest.

Present Value

The valuation at present of a future sum of money or sequence of cash inflows, applying a specified rate of return.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of borrowing money or the return on invested savings.