It is not unusual for a successful firm to temporarily grow more rapidly than its sustainable growth rate if the firm is in the ________ phase of business.
A)swan song
B)start-up
C)cash cow
D)middle

Question

Quizplus · Accepted Answer

The start-up phase is characterized by high growth potential but a lack of operational stability, so it is not uncommon for a successful start-up firm to experience rapid growth that exceeds its sustainable growth rate in the short term. However, the firm must eventually reach a stage of sustainable growth in order to maintain long-term success. The other options (swan song, cash cow, and middle) do not typically involve high growth potential or a lack of operational stability, making them less likely to experience temporary rapid growth beyond their sustainable growth rate.

It Is Not Unusual for a Successful Firm to Temporarily