As the firm transitions to being publicly traded financing c
As the firm transitions to being publicly traded, financing choices increase. While revenue is growing rapidly, earnings and cash flow likely lag behind revenue growth and external cash is needed. This is which phase?
Question 3 options:
Start-up
Expansion
High growth
Mature
| Start-up | |
| Expansion | |
| High growth | |
| Mature | 
Solution
Correct option is > High growth
High growth phase firms need external cash to manage the working capital gaps. Cash flow lag behind from revenue growth.

