Which of the Following Statements Is True

question 23

Multiple Choice

Which of the following statements is true?

• A) Rapid growth spurs increases in market share and profits and thus, is always a blessing.
• B) Firms that grow rapidly only very rarely encounter financial problems.
• C) The cash flows generated in a given time period are equal to the profits reported.
• D) Profits provide assurance that cash flow will be sufficient to maintain solvency.
• E) Due to required cash investments in current assets, fast-growing and profitable companies can literally "grow broke".
• F) None of the above.