When a Firm Wants to Maintain Its Ratios at Their

question 38

True/False

When a firm wants to maintain its ratios at their existing levels,if it has a positive sales growth rate of any amount,it will require some amount of external funding.

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Definitions:

Uncertainty of Demand

The unpredictability associated with the future demand for a product or service, making planning and forecasting challenging.

Flexible Production Capacity

The ability of a manufacturing process to adapt and respond to changes in demand by varying the amount of products produced without sacrificing efficiency or incurring significant costs.

Price

The amount of money required to purchase a product or service.

Risk Mitigation Strategies

Methods or plans implemented to reduce the likelihood or impact of potential threats to a business or project.