The External Financing Requirements of a Firm Are a Function

question 91

Multiple Choice

The external financing requirements of a firm are a function of:

• A) Sales growth
• B) Retention ratio
• C) Profit margins
• D) All of the above

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Definitions:

Maturity Stage

The maturity stage is a phase in the product life cycle characterized by a slowdown in sales growth because the product has achieved acceptance by most potential buyers, leading to increased competition.

Long Production Runs

Extended periods of continuously producing the same product, which often leads to economies of scale and reduced costs per unit.

Operations Strategy

A plan that outlines how an organization will allocate resources to support infrastructure and production to meet business objectives.