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Define the Terms :

1.Operating plan; financial plan

2.Spontaneous liabilities; profit margin; payout


3.Additional funds needed (AFN); AFN equation; capital intensity ratio; self-supporting growth rate

4. Forecasted financial statement approach using percentage of sales

5.Excess capacity; lumpy assets; economies of scale

6.Full capacity sales; target fixed assets to sales ratio; required level of fixed assets

Top Answer

1. An operating plan is a deep and clearly plan which gives insight of how a firm/ team/ section will help in trying to reach... View the full answer

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