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CTP · Question #219

(Topic 3) When company profits are high, what is the MOST LIKELY way management will prefer to finance growth?

The correct answer is B. By retaining earnings. See the full explanation below for the reasoning.

Question

  • (Topic 3)

When company profits are high, what is the MOST LIKELY way management will prefer to finance growth?

Options

  • ABy borrowing funds
  • BBy retaining earnings
  • CBy investing in current assets
  • DBy issuing stock

How the community answered

(21 responses)
  • A
    10% (2)
  • B
    81% (17)
  • C
    5% (1)
  • D
    5% (1)

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