If a firm's sales are constant, its investment in operating assets should also be constant, and the firm will have only a permanent funding requirement.

Name: If a firm's sales are constant, its investment in operating assets should also be constant, and the firm will have only a permanent funding requirement.
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If sales are constant, the firm's operating assets should remain stable, leading to a consistent level of funding needs, known as a permanent funding requirement.

If a Firm's Sales Are Constant, Its Investment in Operating