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    Harvard Business School Case "Kendall Square Research Corporation"

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    The rapid growth in sales expected by Kendall Square research Managers will strain the company's ability to finance their expansion. how, if at all, should this fact affect the ways in which managment chooses accounting principles and a reporting strategy?

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    A rapid growth in sales is both a joy and a burden. Accounting principles should not be compromised, however. Management can work with their bankers, accountants, and legal team to find the best way to report sales, expenses, and earnings. If sales are truly growing rapidly, banks will be more than willing to increase loans, lines of credit, and other financing. Because of this, it is an opportunity for the company to negotiate more ...

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