An Exceptionally High Growth Rate in Sales Will Typically

question 68

Multiple Choice

An exceptionally high growth rate in sales will typically

• A) initially increase the firm's need for discretionary financing.
• B) generate enough cash flow to cover asset expansion.
• C) allow the firm to increase its dividend in anticipation of higher cash flows.
• D) allow the firm to finance expansion with spontaneous sources of financing.

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Definitions:

Earned Income

Income derived from active work, including wages, salaries, tips, and professional fees.

Graduate Assistantship

A form of financial aid provided to graduate students through part-time teaching or research duties, often including tuition remission and a stipend.

Tax Return

A document filed with a tax authority that reports income, expenses, and other pertinent tax information. Taxes are paid or refunds are requested via a tax return.

Scholarship

Financial support awarded to a student, based on academic achievement or other criteria, which does not need to be repaid.