Which Statement Is True About Company Growth

question 109

Multiple Choice

Which statement is true about company growth?

• A)Successful growth occurs on it own.
• B)A high-growth firm's need for additional financing may exceed its available resources,even though the venture is profitable.
• C)Inventory needs will increase while account receivables will decrease with growth.
• D)While rapid growth may stress personnel,the increase in pay will be sufficient.

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Definitions:

Regressive

A term often used in taxation to describe a situation where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower earners.

Top Income Levels

Refers to the highest segment of earners in an economic distribution, often associated with a significant proportion of the total income of a society.

Progressive

Pertaining to a form of taxation in which the tax rate increases as the taxable amount increases, typically applied to income tax.

Regressive

A term describing a tax system where the tax rate decreases as the taxable amount increases, imposing a greater burden on lower-income earners.