Final answer:
The term describes a scenario where a firm is expanding and generating revenue but without actual profit, leading to possible financial instability. It aligns with option B) Unsustainable revenue growth without profit, highlighting the importance of financial backing beyond just profits, especially in competitive markets and early business stages.
Step-by-step explanation:
The phrase ‘Growing profitably while going broke at the bank’ describes a situation where a company is experiencing unsustainable revenue growth without actual profit, which corresponds to option B) Unsustainable revenue growth without profit. This situation can occur when a firm is expanding too quickly, attracting a lot of sales or revenue, but not managing its cash flow or financial stability adequately. In a competitive market, while profits can incentivize expansion and the entry of new firms, this growth must be backed by sufficient financial capital. Firms need to secure financial capital other than profits to sustain investments during challenging times, especially in their early stages where they may struggle to demonstrate profitability to potential investors. Hence, continuous expansion without the financial viability to support it can lead to a situation where a business appears to be growing but is actually facing a potential financial crisis due to a lack of liquid funds.