When Using the Percent-Of-Sales Method in Forecasting the Funds Needed

question 66

Multiple Choice

When using the percent-of-sales method in forecasting the funds needed, which of the following is not true?

• A) Required new funds increase as sales decrease.
• B) Required new funds decrease as profit margin increases.
• C) Required new funds increase as assets increase.
• D) As the tax rate increases, the required new funds increase.

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Definitions:

Distrust

The feeling of uncertainty or lack of confidence in someone or something.

Outgroup Members

Individuals who are not considered part of a specific group or community, often viewed as "them" in contrast to an "us."

Outgroup Homogeneity Bias

The perception that members of an outgroup are more similar to each other than they actually are, often contrasting with the perceived diversity within an ingroup.

Racial Discrimination

Prejudice, attitudes, or differential treatment toward people based on their race or ethnicity.