If a firm is trying to grow more rapidly,which of the following identifies a non-financially-related course of action?
A)increase the retention ratio
B)reduce dividends
C)increase asset turnover
D)increase the debt to equity ratio

Question

Quizplus · Accepted Answer

Increasing asset turnover means that the company is generating more revenue for every dollar invested in assets. This is a non-financially-related course of action because it does not involve changing the firm's financing structure or cash flows. Instead, it focuses on increasing efficiency in operations and maximizing the use of existing assets to drive growth. Options A, B, and D all involve financial decisions such as changing the dividend policy, retaining more earnings, or taking on more debt to fund growth.

If a Firm Is Trying to Grow More Rapidly,which of the Following