The only way a company can grow at a rate above its current sustainable growth rate is by increasing leverage.

Question

Quizplus · Accepted Answer

Increasing leverage is not the only way that a company can grow at a rate above its current sustainable growth rate. Other ways include increasing sales, improving efficiency, expanding into new markets, developing new products or services, and acquiring other companies. However, increasing leverage can be one way to finance growth, but it also comes with increased financial risk.

The Only Way a Company Can Grow at a Rate