Final answer:
The most correct answer about AFN is that it signifies the required additional funds that a business needs beyond its internal financing capabilities, making option (c) the correct choice.
Step-by-step explanation:
The concept of Additional Funds Needed (AFN) is related to finance and is an important part of financial planning for a company. When businesses plan for growth and expansion, they often perform financial analyses to estimate what additional financing will be required to support increased asset levels or additional operations. AFN is a measure that signifies the required additional funds that a company needs after considering all other sources of funding (internal financing, retained earnings, etc.) that are already available to the business. In this context, option (c) 'It signifies required additional funds' is the most correct answer regarding AFN. It is not the funds available but rather the funds that will be needed beyond what the company can generate internally or has on hand.