1. Which liabilities increase spontaneously as the business grows?
Check all that apply:
-Accrued wages
-Accounts payable
-Notes payable
-Accrued taxes
2. Assuming a positive EFN, an increase in which variable increases the EFN? (only 1 answer)
-Retention ratio
-Sales growth rate
-Profit margin
-Capital intensity ratio
3. Which action increases the EFN? (Only 1 answer)
-The firm decreases its dividend payout ratio
-The firm pays employees weekly instead of monthly
-The firm reduces its marketing budget (without affecting sales)