Increasing revenue suggests growth, whereas decreasing revenue indicates the possibility of decreased profits and other financial problems in the future.

Question

Quizplus · Accepted Answer

This statement is generally true in business. Increasing revenue generally means more sales, which can lead to higher profits and growth opportunities. Conversely, decreasing revenue can indicate a decline in sales and potentially lower profits, which can be a warning sign for financial problems in the future. However, it's important to note that revenue alone doesn't always tell the full story of a company's financial health, and other factors such as expenses, market conditions, and competition also play a role.

Increasing Revenue Suggests Growth, Whereas Decreasing Revenue Indicates the Possibility