asked 38.2k views
5 votes
Rapid corporate growth in sales and profits often creates financing problems. Explain what causes this.​

asked
User Sheff
by
7.8k points

1 Answer

4 votes

Step-by-step explanation:

Rapid corporate growth in sales and profits can create financing problems due to increased working capital needs, limited internal cash generation, external financing constraints, inefficient financial management, increased debt levels, and market volatility. These factors can strain a company's cash flow, make it difficult to obtain funding, and increase financial risk. Careful financial planning, disciplined management, and prudent borrowing are essential to mitigate these challenges.

answered
User Perigon
by
8.7k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.