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Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Business Finance and Expansion

Why might ABC Corporation need external financing for its growth plans?

Option 1: To lower operational costs
  

Option 2: To decrease market share
   

Option 3: To enhance employee satisfaction

  

Option 4: To fund expansion projects and investments


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: To fund expansion projects and investments


Solution : The correct answer is (d) To fund expansion projects and investments

External financing is typically sought to fund expansion initiatives, invest in new projects, acquire assets, enter new markets, develop new products, hire additional staff, or cover increased operational expenses. It provides the necessary capital to support growth strategies and ensure the company's ability to capitalize on opportunities and achieve its long-term objectives. Lowering operational costs, decreasing market share, or enhancing employee satisfaction are not the primary reasons for seeking external financing for growth plans.

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