Sustainable growth is defined as the level of growth than an entity can:
A) maintain if it stays in the same business.
B) maintain if it does not change the accounting relationships or capital structure.
C) maintain if the net working capital is increased.
D) maintain if the sales force grows at the rate of inflation.

Question

Quizplus · Accepted Answer

Sustainable growth is the level of growth that an entity can maintain without having to alter its financial leverage or capital structure. It assumes that the company can continue growing at this rate without needing to issue new equity or debt.

Sustainable Growth Is Defined as the Level of Growth Than