Gupta Corporation Has Forecasted Its Need for External Funding in the Following

question 41

Multiple Choice

Gupta Corporation has forecasted its need for external funding in the following year. It needs to raise $2M in either debt or equity. It would like to minimize its need for external funding without decreasing its projected growth. Which of the following would reduce its need for additional funding?

• A) An increase in the dividend payout ratio
• B) An increase in days sales outstanding
• C) An increase in accounts payable
• D) A decrease in inventory turnover

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Definitions:

High Achievers

Individuals who consistently reach or exceed set goals due to their drive, skills, and determination.

McClelland's Learned Needs

A theory that suggests that needs for achievement, power, and affiliation are acquired over time and influence motivation and behavior in the workplace.

Lifelong Employment

A traditional employment concept where an individual works for a single employer for the majority of their career, less common in modern economies.

Job Security

the assurance that an individual will retain their job without the risk of becoming unemployed due to layoffs or business closures.