Growth Companies

Signs of a Growth Company

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The following is a sign that a company is a "growth company":

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Explanations

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A. B. C. D.

C

Companies characterized as "growth companies" are those that do make money, but they keep the money within the company so as to grow the company.

Companies that pay dividends are not maximizing the funds available to fund future growth. Companies that limit earnings by paying employees exorbitant salaries are not growth companies. Companies like this are giving funds to employees rather than holding them within the corporation to fund future growth.