Which of the Following Will Decrease the Additional Funds Needed

question 41

Multiple Choice

Which of the following will decrease the additional funds needed from external sources?

• A) The firm's profit margin decreases.
• B) The firm's retention ratio is decreased.
• C) The firm becomes less capital intensive.
• D) The firm reduces its usage of trade credit.

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Definitions:

Raw Materials

Initial inputs that are processed during manufacturing to produce finished goods.

Requisitions

Official requests or demands for goods, services, or resources, often used in business or governmental operations.

Direct Labor Cost

The salaries given to employees who are directly engaged in manufacturing products or providing services.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end user.