Spontaneously Generated Funds Are Generally Defined as Follows

question 7

Multiple Choice

Spontaneously generated funds are generally defined as follows:

• A) Assets required per dollar of sales.
• B) A forecasting approach in which the forecasted percentage of sales for each item is held constant.
• C) Funds that a firm must raise externally through borrowing or by selling new common or preferred stock.
• D) Funds that arise out of normal business operations from its suppliers,employees,and the government,and they include spontaneous increases in accounts payable and accruals.
• E) The amount of cash raised in a given year minus the amount of cash needed to finance the additional capital expenditures and working capital needed to support the firm's growth.

---

Definitions:

Sodium Chloride

The chemical compound known as table salt, comprised of sodium (Na) and chloride (Cl) ions; essential for human life but also widely used in industry.

Fallacy of Diversion

A logical fallacy that occurs when an argument is diverted away from the original issue, often by introducing a related but different subject.

Electrical Shocks

The sudden discharge of electricity through a part of the body, causing a swift and sometimes severe reaction.

Logical Structure

The framework of reasoning that underlies the organization and coherence of arguments or ideas.