Reference no: EM131997840

1. What would a complete financial plan include at a minimum?

a. pro forma financial statements

b. contingency plans

c. budgets

d. forecasts about the future and beliefs about how the world works (these are often called assumptions)

e. A and B

f. A and C

g. A and D

h. B and C

i. B and D

j. C and D

k. all but A

l. all but B

m. all but C

n. all but D

o. all are true

5. A rapidly growing firm does not have access to sufficient external financing to accommodate its planned growth. What alternatives does it have to avoid running out of cash?

a. reduce its growth rate

b. sell assets

c. expand production capacity to increase profit

d. reduce or suspend it cash dividends

e. A and B

f. A and C

g. A and D

h. B and C

i. B and D

j. C and D

k. all but A

l. all but B

m. all but C

n. all but D

o. all are true

7. What alternatives do profitable growth firms have when internal funds are insufficient to finance expansion?

a. reduce its growth rate

b. sell assets

c. Borrow

d. raise additional equity financing

e. A and B

f. A and C

g. A and D

h. B and C

i. B and D

j. C and D

k. all but A

l. all but B

m. all but C