If a Firm Is Planning an Expansion or Changes in How

question 89

Multiple Choice

If a firm is planning an expansion or changes in how it manages its inventory, long term financial planning can help determine the impact on the firm's ________.

• A) debt financing
• B) capital investment
• C) free cash flows
• D) all of the above

---

Definitions:

Specific Performance

A legal remedy where a court orders a party to perform their obligations under a contract, rather than simply paying damages for breach.

Memorandum

A written record or communication used in business or diplomatic activities.

Statute of Frauds

A rule of law mandating that some agreements must be documented in written form to be legally binding.

Signature of Guarantor

The act of signing by a guarantor, who agrees to fulfill the obligations of a debtor in case the debtor fails to meet their commitments.