When business is profitable, corporate managers will prefer
plowback to other sources of funding.

Question

Quizplus · Accepted Answer

Plowback refers to the practice of reinvesting a portion of the profits back into the company for growth and expansion. When a business is profitable, corporate managers would prefer plowback over other sources of funding, such as borrowing or issuing new shares, as it allows them to retain control and ownership of the company while also generating future growth opportunities.

When Business Is Profitable, Corporate Managers Will Prefer