The management of the Uptown Bikes 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?
A)increased the profit margin
B)lowered income taxes
C)maximized future dividends
D)maximized future retained earnings
E)limited future growth

Question

Quizplus · Accepted Answer

By limiting future borrowing or sales of company stock, the management is restricting the company's ability to raise additional capital, which in turn limits its capacity for future growth and expansion.

The Management of the Uptown Bikes Recently Voted to Limit