Finance Objective Questions - Optimal Growth Rate with Access to External Capital

Question

1. Which of the following is not a use of funds in a statement of sources and uses?

1. Increase in long-term debt
2. Increase in the cash account
3. Reduction in accounts payable
4. Increase in accounts receivable

2. What is the optimal growth rate for a company with access to external capital?

1. Internal growth rate
2. External growth rate
3. Sustainable growth rate
4. Cannot be determined

Summary

These two objective questions belong to Finance and the first question is about funds in statements of sources and the second question is about optimal growth rate for a company.

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