Generally speaking, actions that increase the ﬁrm's ability to generate funds internally decrease its
ability to grow without obtaining external ﬁnancing.

Question

Quizplus · Accepted Answer

Increasing a firm's ability to generate funds internally typically enhances its ability to grow without needing external financing, as it can reinvest its own profits into growth opportunities.

Generally Speaking, Actions That Increase the ﬁRm's Ability to Generate