Which of the Following Best Defines the Term "Additional Funds

question 23

Multiple Choice

Which of the following best defines the term "additional funds needed (AFN) "?

• A)funds that are obtained automatically from routine business transactions
• B)funds that a firm must raise externally from nonspontaneous sources, i.e., by borrowing or by selling new stock to support operations
• C)the amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth
• D)a forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant

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Definitions:

PR

Public Relations, the strategic communication process that builds mutually beneficial relationships between organizations and their publics.

Firms

Businesses or companies engaged in commercial, industrial, or professional activities.

PR Agency

A specialized organization that helps companies and individuals in effectively communicating and building a favorable public image through various media and communication strategies.

Private Corporation

A company owned by a small group of people or by a non-governmental organization, and its shares are not traded on public stock exchanges.