Asked by Skylar Nicholson on May 05, 2024
Verified
The distinguishing characteristic of the second stage of growth is that the key problem shifts to cash flow.
Cash Flow
The sum of net income plus any noncash expenses, such as depreciation and amortization, or the difference between the actual amount of cash a company brings in and the actual amount of cash a company disburses in a given time period.
- Learn about the nature and levels of business growth.
- Determine the distinct phases of progression in small businesses.
Verified Answer
ZK
Zybrea KnightMay 09, 2024
Final Answer :
True
Explanation :
In the second stage of growth, a business has successfully established its products or services and must now manage the increased expenses and capital requirements to support further expansion, making cash flow management a critical issue.
Learning Objectives
- Learn about the nature and levels of business growth.
- Determine the distinct phases of progression in small businesses.
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