The Additional Funds Needed by the Firm Can Be Calculated

question 18

Multiple Choice

The additional funds needed by the firm can be calculated by assuming which of the following?

• A) The firm's additional sales will grow proportionately as assets are purchased.
• B) The firm's additional capital needed will grow proportionately with projected changes in sales.
• C) The firm's balance sheet will grow proportionately with projected changes in sales.
• D) The firm's additional sales will grow proportionately as capital is brought on to the balance sheet.

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Definitions:

Market Values

Refers to the current price at which an asset, security, or commodity can be bought or sold in the marketplace.

Promissory Note

A Promissory Note is a financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date.

Promissory Note

Definition: A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Promissory Note

A financial instrument involving a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.