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Why do businesses want to grow?

Updated: 9/19/2023
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13y ago

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Because their owners (shareholders) want to get a return (an increase) on the value of their investment each year. This means the company needs to generate more profit each year. The shareholders will usually elect a board of directors who are most likely to achieve this growth in profit - at an acceptable level of risk.

A company's shareholders could however decide they want a low growth/low risk strategy.

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13y ago
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