The percentage-of-sales technique is an effective method for a new company to estimate asset requirements because asset-to-liabilities ratios tend to be relatively constant within an industry.

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The percentage-of-sales technique is not an effective method for a new company to estimate asset requirements because asset-to-liabilities ratios can vary widely depending on factors such as the company's growth rate, capital structure, and industry dynamics. It is important for a new company to conduct thorough research and analysis to determine its specific asset requirements.

The Percentage-Of-Sales Technique Is an Effective Method for a New