Retained earnings are usually sufficient to finance a firm's rapid expansion in a high growth economy.

Question

Quizplus · Accepted Answer

Retained earnings, while a source of internal financing, may not be sufficient to finance rapid expansion, especially in a high growth economy where the scale of investment required often exceeds the funds available from retained profits. Companies frequently need to seek external financing options such as issuing new equity or debt to support significant growth initiatives.

Retained Earnings Are Usually Sufficient to Finance a Firm's Rapid