You Are the Owner of a Small Business Which Has

question 68

Multiple Choice

You are the owner of a small business which has the following balance sheet: Fixed and current assets are fully utilized,and the sales/assets and sales/spontaneous liabilities ratios will remain constant.Next year you expect sales to increase by 50 percent.You also expect to retain $2,000 of next year's earnings within the firm.What is next year's additional external funding requirement,i.e.,what is your firm's AFN?

• A) No additional funds are required.
• B) $3,500
• C) $4,500
• D) $5,500
• E) The answer depends on this year's sales level.

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Definitions:

Knowledge

Facts, information, or skills acquired through experience or education; the theoretical or practical understanding of a subject.

Trust

The belief in the reliability, truth, ability, or strength of someone or something, fundamental to building and maintaining social relationships.

Parasocial Relationships

Individuals’ relationships with people in the media, including celebrities, television characters, and athletes.

Interdependence

A mutual reliance between two or more parties, often seen in ecosystems, economies, and social relationships.