Question

4) Explain why rapid growth plans are important to a small company

4) Explain why rapid growth plans are important to a small company

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Answer #1

Growth is very important for small companies. Small companies are small in the beginning but they want to expand and grow in the future. Small companies want to sustain in this competitive era otherwise they may be out from the market. For stability, they need rapid growth so they plan for it. Small companies reinvest their earnings for further expansion purpose, they do not distribute the profit among shareholders in the form of dividend rather they keep the retained earnings and reinvest it for new product or service launch and so they grow in the future.

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