The volatility of a firm's cash balance will steadily decreases as the firm progresses from the survival stage to the rapid-growth stage.

Name: The volatility of a firm's cash balance will steadily decreases as the firm progresses from the survival stage to the rapid-growth stage.
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Question

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As a firm progresses from the survival stage to the rapid-growth stage, its cash balance volatility may actually increase due to higher investment needs, expansion activities, and fluctuating revenues.

The Volatility of a Firm's Cash Balance Will Steadily Decreases