A growth company is one that has the ability to
A) Acquire capital at a low cost and is able to invest in projects that yield an average return.
B) Acquire capital at a low cost and is able to invest in projects that yield a below average return.
C) Acquire capital at an average cost and is able to invest in projects that yield an above average return.
D) Acquire capital at an average cost and is able to invest in projects that yield an average return.
E) Acquire capital at an above average cost and is able to invest in projects that yield an average return.

Question

Quizplus · Accepted Answer

A growth company is one that can generate an above-average return on investment. It can do this by investing in projects that have high potential for growth and profitability. While it is important for a growth company to acquire capital at a low cost, it is more important for it to invest in projects that yield an above-average return. Therefore, option C is the best choice as it mentions that the company can acquire capital at an average cost but can invest in projects that yield an above-average return.

A Growth Company Is One That Has the Ability to