When a Company Is Experiencing Rapid Growth, Which of the Following

question 64

Multiple Choice

When a company is experiencing rapid growth, which of the following statements is the most correct?

• A)Cash flow from operations will be greater than cash flow from investing.
• B)The company will likely need more outside financing than if growth was slower.
• C)Cash flow from operations will be high due to rapid growth allowing company to pay down debt.
• D)Rapid growth will increase internally generated funds allowing higher dividend payments in periods of rapid growth.

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