A sales growth rate based on the retention of profits is referred to as the:
A)sustainable sales growth rate
B)spontaneous sales growth rate
C)nominal sales growth rate
D)weighted average sales growth rate

Question

Quizplus · Accepted Answer

The sustainable sales growth rate is based on the retention of profits, which allows a company to finance its growth without relying on external sources of funding. It takes into account the amount of profits that can be reinvested back into the business while maintaining a stable financial structure. This growth rate is a key metric in determining a company's long-term financial health and sustainability.

A Sales Growth Rate Based on the Retention of Profits