Which statement is true about company growth?
A)Successful growth occurs on its own.
B)A high-growth business'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 businesses often require additional financing to sustain their growth, even if they are profitable. A and D are incorrect as successful growth requires strategic planning and personnel management, and an increase in pay may not be sufficient to retain employees. C is incorrect as inventory needs may increase alongside account receivables.

Which Statement Is True About Company Growth