A business should finance its growth in such a way as to maintain adequate:
A)liquidity.
B)inventory.
C)sales.
D)volume.

Question

Quizplus · Accepted Answer

Adequate liquidity is important for a business to be able to cover its current and future financial obligations. Financing growth should not compromise a company's ability to meet its short-term financial needs. While inventory, sales, and volume are all important factors in business growth, they are not directly related to financing decisions.

A Business Should Finance Its Growth in Such a Way