Question

What is not a likely consequence of rapid poorly managed sales growth?

Answer 1

Not a likely consequence of rapid poorly managed sales growth will be the consequence of increased tax outgo. This is because in case of a company or an organization which faces the problem of rapid poorly managed sales growth will most likely see the consequences in the form of a possibility of cash crunch in future, operational inefficiency kicking in because of uncontrolled expansion. This will lead to increased costs and thinning of profit margins. Other consequences will be in the form of dilution of the level of customer services and employees being overworked and overburdened (and hence having lower levels of motivation and productivity).

All these consequences will lead to operational inefficiencies and will directly and indirectly cause higher costs for the company with rapid poorly managed sales growth. Growth in sales will be outpaced by growth in costs and so profits level will fall. So the most likely consequence will be lower tax amount due to lower profits.