Generally, firms that are growing rapidly
A) have excess cash.
B) are in need of cash.
C) have just the right amount of cash.
D) are cash rich.

Question

Quizplus · Accepted Answer

Generally, firms that are growing rapidly are in need of cash to fund their expansion plans and invest in new projects. They may have high operating costs, increased inventory and receivables, and a need for additional working capital. This makes them more likely to seek external sources of funding such as equity or debt financing. While they may have some cash on hand, it is usually not enough to cover their growth plans.

Generally, Firms That Are Growing Rapidly