As corporations grow, their requirements for outside capital can expand dramatically.

Question

Quizplus · Accepted Answer

As corporations grow and undertake new projects, expand their operations, or acquire other companies, they may require additional capital beyond what they can generate internally. This can come in the form of equity investments from new shareholders, debt financing from banks or bondholders, or other forms of external funding. Therefore, the statement is true.

As Corporations Grow, Their Requirements for Outside Capital Can Expand