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Executing Processes

question 16

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Executing processes:


Definitions:

Operating Capacity

The total output a company can produce using its current resources, under normal working conditions.

Sales

The total amount of a company's revenues generated from the sale of goods or services.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment in its core business or to pay debt.

Internal Growth Rate

The internal growth rate is the maximum rate at which a company can expand its operations through reinvestment of its own earnings, without raising external financing.

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