For a growing firm,external financing needed will most likely be greater than discretionary financing needed due to increases in accounts payable and accruals.

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As a firm grows, it usually requires more external financing to fund operations, investments, and other expenses. These financing needs can include debt or equity financing. Additionally, as the firm's operations expand, its accounts payable and accruals will likely increase, representing a larger portion of its overall financing needs. Discretionary financing, which refers to funds used for nonessential activities such as share repurchases or dividend payments, may also increase but is typically not as significant as external financing needs for a growing firm.

For a Growing Firm,external Financing Needed Will Most Likely Be