Building a Model for Long-Term Forecasting Reveals Points in the Future

question 57

Multiple Choice

Building a model for long-term forecasting reveals points in the future where the firm will need ________ when retained earnings are not enough to fund planned future investments.

• A) external financing
• B) stock dividends
• C) dividend payments
• D) mergers

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Definitions:

Resource Dependency

A theory in organizational studies that describes how external resources of organizations influence the behavior and strategies of these organizations, often leading to adaptations or strategic partnerships to secure necessary resources.

Population Ecology

A sub-field of ecology that deals with the dynamics of species populations and how these populations interact with the environment.

Information Asymmetry

A situation where one party in a transaction has more or better information than the other, leading to imbalances in decision making.

Population Ecology

A branch of biology that studies the dynamics of species populations and how these populations interact with the environment.