A local business has decided to rely entirely on retained earnings as its only method of financing. What is one possible downside?(1 point)
Responses
There are interest charges that need to be paid back.
If the company is unprofitable, it may be unable to pay for operating costs.
The ownership of the corporation could be diluted.
If an opportunity arises to expand the business and they cannot find any investors, the opportunity could be missed.
1 answer
If an opportunity arises to expand the business and they cannot find any investors, the opportunity could be missed.
0 answers