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Finance

1. To determine the additional funds needed to support the level of forecasted operations,______

A subtract the spontaneously generated funds from the sales forecast

B subtract all the operating costs from the sales forecast

C add the funds generated internally to the spontaneously generated funds

D subtract the funds generated internally from the required funds

E add the spontaneously generated funds to the retained earnings plus

2. A firm projects a small increase in sales, but still requires a significant increase in plant and equipment. Which of the following is a reason for such a large financial commitment?

A Decrease in economies of scale

B Increase in fixed operating costs

C Decrease in financing feedbacks

D Increase in lumpy assets

E Decrease in spontaneously generated funds

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92772911

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