The management recently voted to limit any future borrowing or sales of company stock. By taking this action, management has effectively _________ of the firm.

Question

Quizplus · Accepted Answer

By limiting borrowing and sales of company stock, management has restricted the firm's ability to raise funds for future expansion or investment opportunities. This will likely limit the company's future growth potential. The other choices are not necessarily directly impacted by this action.

The Management Recently Voted to Limit Any Future Borrowing or Sales