Which of the following describes a growth company?

Question

Quizplus · Accepted Answer

A growth company is one that reinvests its profits back into the business to finance growth and expansion. This is in contrast to a company that pays a large dividend, which would be more focused on providing income to its investors. Sales revenues may or may not be increasing, but the focus is on investing in the future rather than short-term profits. A growth company may face challenges with rapid expansion, but the idea is that management is able to navigate these challenges successfully. A growth company may or may not be considered conservative, depending on its industry and approach to risk.

Which of the Following Describes a Growth Company