A company experiencing rapid growth can be short of cash despite earning substantial net income.

Name: A company experiencing rapid growth can be short of cash despite earning substantial net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Rapid growth may require significant investments in infrastructure, hiring more employees, and expanding operations, resulting in increased expenses despite earning a net income. This can lead to a shortage of cash for the company.

A Company Experiencing Rapid Growth Can Be Short of Cash