As a business organization grows the need for additional cash resources often acts as a catalyst for the way that its legal structure evolves

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As a business grows, it may need to raise more capital for various reasons such as expanding operations, investing in research and development, or acquiring other companies. This often leads to changes in its legal structure, such as issuing stock or taking on debt, to facilitate the infusion of additional cash resources.

As a Business Organization Grows the Need for Additional Cash