answersLogoWhite

0

  • 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

βˆ™ 2010-03-02 22:20:39

Best Answer
Copy

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.

2010-03-02 22:20:39
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Add your answer:

Earn +5 pts
Q: Rapid corporate growth in sales and profits can cause financing problems Elaborate on this statement?
Write your answer...
Submit

Related Questions

What is the MAIN contribution of bookkeepers to troubleshooting corporate problems?

What is the MAIN contribution of bookkeepers to troubleshooting corporate problems?


What are the corporate governance problems leading up to the corporate scandals of the early 21st century?

Agency costs


What problems did Henry ford face?

Getting financing was his major problem in the beginning.


What was Big Lots major problems in recent past?

corporate greed


What are some of the business problems with corporate social responsibility functions?

Some of the business problems with corporate social responsibility functions are: 1. Demands of national legislature 2. Human rights 3. environmental responsibility 4. civic freedom


What is the 3M mission statement?

To solve unsolved problems innovatively


What are the problems communities experience in relation to social corporate investment?

Some of the corporate social investment is given to the communities on a short term basis and this destroys the hopes of the people in the community.


Statement of problem of monetary policy in Nigeria?

the problems of monetary policy in Nigera


Pokemon Pearl sunyshine city problems?

Could you elaborate please? I have a Pokemon DIAMOND and I have sunnyshore problems too. I reaserched on it and someone told me to go to Mt.Cornett only to find a "Lowly grunt with out any Pokemon"


"Only the poor cities of the world have to deal with the problems of urbanization." Discuss this statement. To what extent do you agree and why Does the whole world need to work together to deal with these problems?

link, transcend or cope with the following "


What eye problems causes giddiness?

Answer this question... Which of the following is a true statement about skew lines?


Does the American Society of Tax Problems Solvers have a mission statement?

The American Society of Tax Problems Solvers' mission statement is to provide their members with resources to help them provide taxpayers with competent representation. Their website provides details about how they intend to go about this.


A statement of consent form for your child to travel but dont know where his father is What do you do to ensure your child and you can travel without problems?

A statement of consent form for your child to travel


How do you do a thesis statement?

an arguable statement-, i.e. violent video games can affect a persons way of thinking and cause them to act violently in real life. any arguable statement on problems in todays society is a good thesis statement as long as it is well put.


What are some of the drawbacks of traditional corporate training?

Training days require employees to miss work, which creates additional problems for hotel managers and guests. Additionally, tight budgets limit the number of corporate trainers available.


What are two problems with divided government?

The problems with having a divided government are that they will always take too long to carry out some projects. The divisions will also make the financing of certain projects hard because of endless debate.


What has the author Jeannette A Switzer written?

Jeannette A. Switzer has written: 'Study guide for use with Fundamentals of corporate finance, 5th Canadian ed' 'Study guide for use with Fundamentals of corporate finance, fourth Canadian edition, Stephen A. Ross ..' -- subject(s): Corporations, Finance, Problems, exercises, Problems, exercises, etc


What has the author Myles la Grange Mace written?

Myles la Grange Mace has written: 'Management problems of corporate acquisitions'


Is there any logic in Statement of fact and statement of values?

I want to know a brief idea about Philosophy. That consists of three valuable paradism these are Problems of Philosophy, Logic & Ethics.


How do you write a problem statement for a project?

By identifying and listing the problems within that project and suggestion the solutions.


Which statement is true japan was eager to learn new technology in 1900?

It always solves problems.


What are the current problems facing by non banking financial institutions in bangladeh?

The current problems facing by non banking financial institutions in Bangladesh are gaining increased popularity in recent times.The major business of most NBFIs is leasing some are also diversifying into other lines of business like term lending, housing finance, merchantbanking, equity financing and venture capital financing.


What is corporate culture?

The corporate culture has many different aspects. Back stabbling, butt kissing and self promotion are some of it's problems. The above answer is correct. It is the playground of the devil and the best place for those who like to play that type of game.


Problems faced by financial services market in India?

less instrument and less new market,instead need of factoring project financing,less effective protection creativity of idea and technology thats all are the problems on market of India.


What has the author J H Frumpong-Ansah written?

J. H. Frumpong-Ansah has written: 'Some problems of managing and financing of economic development in Africa'