The growth of mature companies is primarily funded by:

Question

Quizplus · Accepted Answer

Mature companies typically have steady earnings and cash flow, which allows them to reinvest in the business for growth. They may also pay dividends to shareholders, but this is not a primary source of funding for growth. Issuing new shares or debt may dilute existing shareholders' equity and increase debt levels, respectively, so these options may be less desirable for mature companies. Increasing accounts payable can also increase current liabilities, which may impact the company's financial health, so this is also not a primary source of funding growth for mature companies.

The Growth of Mature Companies Is Primarily Funded By