Which of the following statements is true about company growth?
A) Successful growth occurs on its own.
B) A high-growth firm's need for additional financing may exceed its available resources, even though the venture is profitable.
C) Inventory needs will increase while account receivables will decrease with growth.
D) While rapid growth may stress personnel, the increase in pay will be sufficient.

Question

Quizplus · Accepted Answer

High-growth firms often require additional financing to sustain their growth, even if the venture is profitable. This is because the need for financing may exceed the resources available to the company. The other statements are false. Successful growth requires strategic planning and effort, inventory needs and account receivables may both increase with growth, and rapid growth can create personnel challenges beyond just compensation.

Which of the Following Statements Is True About Company Growth