A firm's economic potential will directly impact how it is financed.

Question

Quizplus · Accepted Answer

The economic potential of a firm, which includes its profitability and growth prospects, will impact how easily it can obtain financing and at what cost. A stronger economic potential may make it easier for the firm to secure financing at lower interest rates and more favorable terms, while a weaker economic potential may make it harder and more expensive to obtain financing.

A Firm's Economic Potential Will Directly Impact How It Is