________ is the amount of external financing a firm must seek in order to change the assets base as necessary to support a different level of sales.
A) additional funds needed
B) capital intensity ratio
C) trade credit
D) spontaneous liabilities ratio

Question

Quizplus · Accepted Answer

Additional Funds Needed (AFN) is the amount of money a firm must seek from external sources to support a change in its asset base for a different level of sales. This concept is crucial in financial planning to ensure the firm has enough resources to support growth or changes in operations.

________ Is the Amount of External Financing a Firm Must