A firm with potential for large profits, as opposed to high growth potential, has many more possible sources of financing than does a firm that offers only unattractive returns.

Question

Quizplus · Accepted Answer

The statement is incorrect. A firm with high growth potential often has many more possible sources of financing than a firm with potential for large profits but no growth. Investors are often more willing to invest in a high-growth company with the potential for high returns, even if there is more risk involved.

A Firm with Potential for Large Profits, as Opposed to High