A firm's current value is related to its future growth opportunities,and corporations can attract funds more easily than unincorporated businesses to take advantage of growth opportunities.

Question

Quizplus · Accepted Answer

This statement is true as a firm's current value is determined by its ability to generate future cash flows, which in turn is related to its growth opportunities. Corporations can attract funds more easily than unincorporated businesses because they have limited liability, which gives investors more confidence in their ability to repay loans and make returns on investments. This makes it easier for corporations to finance their growth opportunities.

A Firm's Current Value Is Related to Its Future Growth