A firm should finance its growth in such a way as to maintain adequate
A) liquidity.
B) inventory.
C) sales.
D) volume.

Question

Quizplus · Accepted Answer

Maintaining adequate liquidity is crucial for a firm's growth because it allows the firm to meet its short-term obligations and expenses. Adequate liquidity also ensures that the firm has access to funds when unexpected expenses or opportunities arise. Therefore, financing growth while keeping adequate liquidity is important.

A Firm Should Finance Its Growth in Such a Way