The least scrutiny of management's operations occurs when ____ is the method used to obtain corporate financing.

Question

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Plowback, or retained earnings, involves using a company's own profits to reinvest in its operations or to finance expansion. This method does not involve external investors or lenders, and thus, typically involves the least scrutiny of management's operations compared to options that involve external financing, such as issuing stocks or bonds.

The Least Scrutiny of Management's Operations Occurs When ____ Is