Which of the Following Is Most Likely to Occur Because

question 120

Multiple Choice

Which of the following is most likely to occur because of an increase in the price of electricity in California?

• A)An increase in electricity imported into California.
• B)A decrease in electricity imported into California.
• C)An increase in the consumption of electricity in California.
• D)A decrease in the supply of electricity in California.

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Definitions:

Basic Assumptions

Fundamental beliefs or principles that underlie the financial accounting system, including economic entity, monetary unit, time period, and going concern.

Internal Growth Rates

The maximum rate at which a company can expand using only internal financial resources without resorting to borrowing or seeking new equity investment.

External Financing Needs (EFN)

The amount of funding a business requires from external sources to finance its planned growth or expansion activities.

Negative EFN

External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.