Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy.

Question

Quizplus · Accepted Answer

While retained earnings can be a source of funding for a firm's expansion, they may not always be sufficient in a high-growth economy where there may be significant capital requirements such as investments in technology, infrastructure, and hiring new personnel. In such cases, the firm may need to look for additional sources of funding such as equity or debt financing.

Retained Earnings Are Always Sufficient to Finance a Firm's Rapid