Which statement is true about company growth?
A)Successful growth occurs on it own.
B)A high-growth firm'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

A high-growth firm may require more finances to fuel expansion, even if it is already making a profit. This can be due to the need to invest in new equipment or personnel, or the need to pay off existing debts. Option A is incorrect because successful growth typically requires careful planning and execution. Option C is incorrect because inventory needs and accounts receivable are both likely to increase with growth. Option D is incorrect because rapid growth may lead to employee burnout, turnover, and/or the need to hire new, more experienced personnel. The increase in pay may not be sufficient to retain top talent or to attract new, high-quality employees.

Which Statement Is True About Company Growth