Multiple Choice QuestionA growth company has:Multiple choice question.a lower debt to equity ratio.better than average earnings potential.a higher debt to equity ratio.worse than average earnings potential.
Question
Multiple Choice QuestionA growth company has:Multiple choice question.a lower debt to equity ratio.better than average earnings potential.a higher debt to equity ratio.worse than average earnings potential.
Solution
A growth company typically has better than average earnings potential. This is because growth companies are often in the expansion phase, investing heavily in research and development, and reinvesting profits back into the business for growth. Therefore, the correct answer is:
b. better than average earnings potential.
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