External Funding Requirements Can Be Estimated Using an Equation Called

question 111

Multiple Choice

External funding requirements can be estimated using an equation called the EFR relationship. The simple concept behind this equation is that funds will be needed to the extent of forecasted:

• A)growth in assets minus new retained earnings.
• B)growth in sales minus all current liabilities minus all retained earnings.
• C)assets minus current liabilities minus new retained earnings.
• D)growth in assets minus growth in current liabilities minus new retained earnings.

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Definitions:

Entrepreneurship

The process of designing, launching, and managing a new business venture, typically characterized by innovation, risk-taking, and the pursuit of profit.

Tolerance for Ambiguity

The capacity to remain comfortable and composed in situations that are unclear, uncertain, or have unpredictable outcomes.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise, often innovating and driving economic growth.

Independent Contractor/Consultant

A person or entity engaged by a company to perform specific tasks or provide expert advice, typically not considered an employee of the company.