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.

---

Definitions:

Process

A series of actions or steps taken to achieve a particular end, often referring to production, business, or administrative procedures.

ISO 9000

A set of international standards for quality management and quality assurance designed to help companies ensure they meet customer and other stakeholder needs.

Process

A series of actions or steps taken to achieve a particular end, often described in manufacturing, project management, or business procedures.

Procedure

A set of established methods or steps taken to accomplish a particular task or to solve a specific problem.