If the sales growth rate is greater than zero,then the discretionary financing needed will also be greater than zero.

Question

Quizplus · Accepted Answer

The discretionary financing needed (DFN) depends on the company's capacity to finance its growth through internal operations and existing financing arrangements. A positive sales growth rate does not automatically mean that DFN will be greater than zero, as the company might have sufficient internal funds or credit facilities to support its growth without needing additional discretionary financing.

If the Sales Growth Rate Is Greater Than Zero,then the Discretionary