F Marston, Inc

question 1

Multiple Choice

F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN) ?

• A) a switch to a just-in-time inventory system and outsourcing production.
• B) the company reduces its dividend payout ratio.
• C) the company switches its materials purchases to a supplier that offers a longer credit period (with all other terms held equal).
• D) the company discovers that it has excess capacity in its fixed assets.
• E) a sharp increase in its forecasted sales.

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Definitions:

Point-To-Point

Relating to a communication configuration where two devices are directly connected and communicate with each other without any intermediary.

Robot Arm

A type of mechanical arm with multiple joints that can be programmed to perform a variety of tasks, such as assembly, painting, or welding.

Mechanical Links

Connective components in a machine that transfer motion and forces between parts, essential for the mechanical operation and physical interactions within the system.

Solenoids

Electromechanical devices that convert electrical energy into linear mechanical motion, commonly used in valves, locks, and other actuating mechanisms.