Regarding the use of funds generated within the firm:
A) Reinvesting cash generated from operations is usually more expensive than borrowing money.
B) A company with a product that has significant growth potential should invest the earnings from that product to salvage declining products.
C) Indirect distribution usually requires more investment capital for a producer than does direct distribution.
D) When finances are tight, companies should look for strategy alternatives that help get a better return on money already invested.
E) All of these.

Question

Quizplus · Accepted Answer

When finances are tight, companies should explore other strategies to increase the return on money that is already invested, such as cost-cutting measures or identifying new revenue streams. Reinvesting cash generated from operations can be more expensive than borrowing money, and there may not always be significant growth potential for a particular product that justifies investing earnings from that product over salvaging declining products. Additionally, it is not necessarily true that indirect distribution requires more investment capital than direct distribution.

Regarding the Use of Funds Generated Within the Firm