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The Minimum Growth Rate That a Firm Can Achieve with No

question 7

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The minimum growth rate that a firm can achieve with no access to external capital is called the firm's sustainable growth rate.It can be calculated by using the AFN equation with AFN equal to zero and solving for g.


Definitions:

Behavior Potential

The likelihood of expressing a particular behavior in a specific situation, dependent on the reinforcement of the behavior.

Reinforcement

In behaviorism, a stimulus that increases the likelihood of a behavior being repeated.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which in turn increases or decreases the likelihood of that behavior being repeated.

Shaping

A method of training or teaching by which successive approximations towards a desired behavior are reinforced.

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