The management of the Downtown Athletics recently voted to limit any future borrowing or sales of company stock.By taking this action,management has effectively done which one of the following?

Question

Quizplus · Accepted Answer

By limiting future borrowing or sales of company stock, the management of Downtown Athletics has effectively restricted the company's ability to raise funds for growth and expansion. This action may limit the company's future growth potential, as it will have to rely on its existing resources and earnings to finance any new investments or ventures. Thus, the best choice is E.

The Management of the Downtown Athletics Recently Voted to Limit