Investing and Financial Markets
Financial Statements
Population

Rapid corporate growth in sales and profits can cause financing problems Elaborate on this statement?

User Avatar
Wiki User
2010-03-02 22:20:39

Oftentimes when a business undergoes rapid growth in sales

and profits, asset growth also increases rapidly. It may be

difficult for a business to come up with the funds from suppliers,

the bank, or stockholders in a reasonable amount of time. For

example, if I made $30K profit this year but asset growth was $60K

due to the growth, I would have to find a way to finance the

remaining amount.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.