Management Wishes to Reduce Next Year's External Funding Needs

question 76

Multiple Choice

Management wishes to reduce next year's external funding needs. Which of the following will accomplish this task?

• A)Decrease profit margins
• B)Decrease the dividend payout ratio
• C)Increase the assets/sales ratio
• D)None of the above

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Definitions:

Charity

An act of giving help, typically in the form of money or goods, to those in need.

Predicts Well

"Predicts well" refers to the accuracy and reliability with which a model or method can forecast future events or outcomes based on current or past data.

Economic Model

A simplified representation of economic processes, typically using mathematical formulas or graphs, to understand and predict economic behaviors.

Poor Predictions

Forecasts or estimations that fail to accurately anticipate future events or outcomes.