The greater a firm's sales, the greater the need for financing because of greater _____ requirements.
A) asset
B) employee
C) marketing
D) operational

Question

Quizplus · Accepted Answer

The greater a firm's sales, the greater the need for financing because of greater asset requirements. As sales increase, a firm may need to invest in more inventory, production equipment, or other assets to keep up with demand. This requires financing to purchase these assets, which is why the need for financing increases with sales.

The Greater a Firm's Sales, the Greater the Need for Financing